Wall Street retreated from record highs on Monday as oil weighed on energy shares, while a stronger dollar pressured metals ahead of central bank meetings in the U.S. and Japan this week.
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Crude oil settled at a three-month low on Monday on an expected decline in USA refinery activity.
The S&P 500 was down 5.61 points, or 0.26 per cent, at 2,169.42.
The S&P energy index fell 2 percent, its biggest percentage decline since June 27 when Britain’s vote to leave the European Union sparked a massive selloff in risk assets.
Exxon and Chevron were down 0.7 per cent. Exxon was the top drag on the S&P 500, while Chevron had a similar impact on the Dow.
The S&P and the Dow are just 0.6 percent shy of their intraday record highs.
On Wednesday, the Federal Reserve announces whether it will raise its benchmark interest rate.
Even with recent data pointing to the US economy being on strong footing, the Fed is still cautious about pulling the trigger due to global uncertainty sparked by Britain’s vote to leave the European Union.
Nasdaq 100 e-minis were down 2.5 points, or 0.05 percent, on volume of 16,453 contracts.
Although analysts do not expect the bank to make a move, it may signal a rate hike in September or December.
Apple (NasdaqGS: AAPL – news) shares fell 1.33 percent after BGC cut the stock to “sell” ahead of the company’s earnings report on Tuesday.
The most influential gainers on the index included Valeant Pharmaceuticals International Inc., which rose 1.9 per cent to $30.61 after a sharp fall in the previous session, and Rogers Communications Inc., which added 1.2 per cent to $57.50.
Yahoo’s YHOO.O shares were down 0.8 percent at $39.05 premarket, after agreeing to sell its core internet business to Verizon VZ.N for $4.8 billion.
The gains seen last Friday lifted the S&P 500 to a new record closing high, while the Nasdaq reached its best closing level of 2016.
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Following the news, shares of the former fell 0.41 per cent to 55.87 dollars apiece on Monday, while shares of the latter slipped 2.69 per cent to $38.32 per share.
