The Dow Jones Industrial Average climbed Monday as investors sold big technology names in favor of other sectors such as banks and energy.
The Dow advanced 260.88 points, or 0.67%, to close at 39,411.21. The S&P 500 slid 0.31% to 5,447.87, while the tech-heavy Nasdaq Composite declined 1.09% to 17,496.82. It was the worst day since April for the Nasdaq.
Information technology was the biggest declining S&P 500 sector for the day, falling more than 2%. Meanwhile, energy advanced 2.7%, and financials and utilities were up roughly 1%. Dow member JPMorgan Chase gained 1.3%, while Goldman Sachs and Chevron climbed more than 2% each.
Nvidia fell about 6.7%, adding to its 4% decline last week that snapped an eight-week winning streak. The pullback occurred after Nvidia briefly dethroned Microsoft as the most valuable company in the U.S. Chart analysts also pointed to bearish patterns in Nvidia's recent trading.
Despite the selloff, shares are still up nearly 140% for the year.
The pullback in Nvidia is "pretty healthy," according to Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.
"Last week and now, we're seeing a healthy rotation. This is actually a really nice pause in tech, and a rotation back into some of the other sectors that have been pulling back," he said.
The enthusiasm surrounding artificial intelligence has lifted the market significantly this year even as investors grappled with shifting expectations for rate cuts and a slowing economy. The S&P 500 has advanced 14% this year after notching 31 record closes.
Investors will receive key inflation data this week in the form of May's personal consumption expenditure data. The Federal Reserve's preferred inflation gauge is set to be released Friday.
Stocks are coming off a record-setting week, with the S&P 500 and Nasdaq notching fresh all-time highs as Wall Street heads into the final week of June and the end of the first half of 2024.
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