Stocks fell on Monday as losses in Apple shares pressured the broader tech sector. Investors also braced for key testimony from the top Federal Reserve official later this week.
The Dow Jones Industrial Average dumped 115.98 points to close the day at 26,806.14
The S&P 500 subtracted 14.46 points to 2,975.95
The NASDAQ Composite deducted 63.41 points to 8,098.38
Apple shares fell more than 2% after an analyst at Rosenblatt Securities downgraded them to sell from neutral. The analyst said the stock will “face fundamental deterioration over the next six to 12 months”, as Apple's iPhone sales disappoint and growth in other products slows down.
Other tech shares like NetApp and Juniper Networks fell more than 3% each. Applied Materials and Lam Research both declined more than 1%.
Tech has been a stalwart on Wall Street this year. The sector is up nearly 28% in 2019 and is outperforming the S&P 500 by about seven percentage points.
In corporate news, Deutsche Bank announced Sunday it will close off its global equities trading business and slash 18,000 jobs as part of a massive restructuring effort to improve the bank's profitability. The company's U.S.-listed shares dropped more than 5%
Wall Street also looked ahead to testimony from Fed Chair Jerome Powell on Wednesday. Powell's testimony comes after a stronger-than-expected jobs report raised questions about whether the Fed will cut rates later this month.
The Fed opened the door for lower rates last month after saying it will "act as appropriate" to maintain the current U.S. economic expansion, which is the longest ever.
Prices for the benchmark 10-year U.S. Treasury waned slightly, raising yields to 2.05%, from Friday's 2.04%. Treasury prices and yields move in opposite directions.
Oil prices dropped two cents to $57.49 U.S. a barrel.
Gold prices slumped $5.60 to $1,394.50 U.S. an ounce.