NEW YORK (AP) โ Stocks fell on Wall Street on Monday ahead of some key reports this week on the labor market that could provide more insight into the Federal Reserve's thinking on interest rates.
The S&P 500 lost 0.9%. The index is coming off its best month in more than a year and hit its highest level in more than a year on Friday.
The Dow Jones Industrial Average fell 150 points, or 0.4%, to 36,097 as of 11:20 a.m. ET. The Nasdaq composite fell 1.5%.
Treasury yields rose, putting some pressure on stocks. The 10-year Treasury yield, which influences mortgage ratesrose to 4.29% from 4.21%.
Technology companies were among the biggest players in the market. Microsoft fell 2.6% and Apple 1.8%.
Spotify rose 7% after announcing its third round of layoffs this year. Uber gained 5.6% after the ride-hailing service was included in the S&P 500 index.
Alaska Air Group fell 15.6% after announcing it will buy Hawaiian Airlines in a $1.9 billion deal, a partnership that would test the Biden administration as it fight against consolidation in the airline sector.
US crude oil prices fell 0.3%. Oil prices have been falling recently, which has helped ease pressure on inflation.
Markets were mixed in Europe and Asia.
Wall Street is coming off a solid week and a solid November with hopes that inflation is slowing enough to allow the Federal Reserve to stop raising interest rates. Investors also hope the economy remains strong enough to avoid a recession.
Investors will receive several key updates on the economy this week, including reports on the services sector and the labor market.
The Institute for Supply Management will release its November report on the services sector on Tuesday. The sector is a key component of the US economy and accounts for the majority of the country's jobs. The report could provide more information on consumer spending and the labor market.
Wall Street will receive several reports this week that will focus on the broader jobs picture in the U.S. The government will release its October update on job openings on Tuesday and a weekly report on jobless claims on Thursday.
Investors will closely monitor the government's monthly employment report for November, which is due out on Friday. Analysts surveyed by FactSet expect U.S. employers to have added 175,000 jobs last month. They predicted the unemployment rate would remain stable at 3.9%.
The labor market has remained strong in the United States even as the Federal Reserve has sharply raised interest rates to combat inflation by slowing the entire economy. Inflation has been falling since mid-2022. The central bank paused raising rates after its most recent hike in late July.
Wall Street expects rates to remain stable until early 2024, when the Federal Reserve could begin cutting interest rates from their highest level in two decades. The Federal Reserve's next rate decision will be made after the close of its next two-day meeting on December 13.
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