Stocks were lower Monday as investors looked ahead towards a busy week that includes the latest monetary policy decision from the Federal Reserve, earnings reports from tech heavyweights, and monthly jobs data. The Dow Jones Industrial Average (DIA ) fell over 260 points, while the S&P 500 Index (SPY ) and Nasdaq Composite dropped 1.3% and 2%, respectively.
Here's how the market settled on Monday:
S&P 500 Index (SPY ): -1.30% or -52.79 points to 4,017.77
Dow Jones Industrial Average (DIA ): -0.77% or -260.99 points to 33,717.09
Nasdaq Composite Index (QQQ ): -1.96% or -227.89 points to 11,393.81
Wall Street came off a weeking week last week on strong economic data, while Tesla (TSLA ) shares drove the S&P and Nasdaq higher after the electric carmaker announced a production hike following record quarterly revenue. The Nasdaq outperformed, rising over 4%, while the S&P 500 and Dow added 2.5% and 1.8%, respectively.
On Monday, Ford (F ) shares fell nearly 3% on Monday after the automaker announced it is cutting prices of its electric Mustang Mach-E crossover, following a recent decision from industry leader Tesla a few weeks ago. Ford will lower pricing of the Mach-E by an average of about $4,500, depending on the model. Still, the automaker also announced it will be increasing production of the electric vehicle.
Shares of Johnson & Johnson (JNJ ) declined more than 3% Monday after a U.S. appeals court blocked the pharmaceutical company's strategy to use bankruptcy to resolve a billions of dollars in legal claims tied to Johnson and Johnson's baby powder.
Bed Bath & Beyond (BBBY ) shares surged over 12% on Monday after the retailer announced it will close dozens of stores as it struggles to pay its debts. The company is expected to file for bankruptcy as it considers ways to improve its finances through cutting costs, lowering capital expenditures and reducing brick-and-mortar locations and distribution centers.
Looking ahead, the Fed is expected to raise interest rates by one-quarter of a percentage point. Following that decision, Fed Chair Jerome Powell will give remarks that will offer clue on the central bank's plan for rate hikes this year.
Meanwhile, about 20% of the S&P 500 is set to report earnings this week, including numbers from McDonald's (MCD ) and General Motors (GM ) on Tuesday and big tech heavyweights Alphabet (GOOG ), Amazon (AMZN ), Apple (AAPL ) and Meta Platforms (META ).
Major jobs data for January is set to end the busy week on Friday, with economists surveyed by Bloomberg expecting payrolls to total 185,000 additions, marking a slowdown from December's gain of 223,000 jobs.