Stocks fell on Monday as traders booked some profits given the historically strong gains logged in November.
The Dow Jones Industrials dropped 271.13 points at 29,638.64.
Travelers and Chevron were among the worst-performing Dow stocks, Travelers falling 3.6% and Chevon off 4.5%.
The S&P 500 slid 16.72 points to 3,621.63. Energy led the way lower in the S&P 500, losing 5.4% for its worst day since June 24.
The NASDAQ shed 7.11 points to 12,198.74.
Market sentiment took a hit after Reuters reported that the Trump administration is weighing blacklisting Chinese leading chipmaker SMIC as well as national offshore oil and gas producer CNOOC. The move would limit their access to American investors and escalate tensions with China before President-elect Joe Biden takes over.
Cruise lines and airlines, two of the best-performing groups this month, struggled on Monday. Carnival dipped 7.4%, and Norwegian Cruise Line slid 3.4%. American Airlines dropped more than 5%, and Delta pulled back by 2%.
Despite Monday's losses, the major averages posted sharp monthly gains.
The blue-chip Dow rose 11.8% in November, its best monthly performance since January 1987, as promising vaccine developments boosted confidence of a smooth economic reopening. The S&P 500 soared 10.8% and the NASDAQ climbed 11.8%, in November, their biggest monthly advances since April.
Cyclical sectors, those most economically sensitive groups, led the market's November rally amid a slew of positive vaccine news. Energy, 2020's biggest loser, jumped 26.6% this month, while financials, industrials and materials all gained at least 12.2% during this period.
Boeing and American Express led the way higher for the Dow, the planemaker rising 45.9% while the bank spiked 30%, in November. Chevron, JPMorgan Chase, Disney and Honeywell each rose more than 20% this month.
More than 266,000 people have died from the coronavirus in the U.S., and more than 13 million cases have been confirmed in the country, according to data from Johns Hopkins University.
Dr. Anthony Fauci, the nation's top infectious disease expert, said on Sunday that the U.S. is heading into a tough period of the pandemic in which restrictions and travel advisories will be necessary.
Los Angeles County in California imposed a new stay-home order Friday as cases surged in the nation's most populous county. Meanwhile, New York City public schools will begin to reopen on Dec.7.
However, Moderna said Monday that new trial data showed its Covid-19 vaccine candidate was more than 94% effective. The company added it plans to ask the Food and Drug Administration for emergency clearance later in the day. Moderna shares rallied 20.2%.
Prices for the 10-Year Treasury climbed slightly, lowering yields to 0.85% from Friday's 0.84%. Treasury prices and yields move in opposite directions.
Oil prices dipped 36 cents to $45.17 U.S. a barrel.
Gold prices dropped $9.20 to $1,778.90 U.S.