US stocks close lower after highest gains since August

On Monday, the S&P 500 index closed slightly lower after touching its highest gains since August. The benchmark index erased earlier gains and lost 0.2% to finish at 4,273.79 1. The Nasdaq Composite also dipped 0.09% to close at 13,229.43, while the Dow Jones Industrial Average dropped 199.90 points or 0.59% to end at 33,562.86.

Apple retreated from all-time highs touched earlier in the session and lost about 0.8%. The iPhone maker unveiled its highly anticipated virtual reality headset and a slew of software updates at its annual Worldwide Developers Conference.

Intel shed 4.6% as Apple revealed a new chip, while Nvidia pulled back on valuation concerns after its recent surge. JPMorgan Chase and Goldman Sachs struggled amid news that regulators are considering upping capital requirements at large banks.

Markets are catching their breath after Friday’s broad rally. It is a very lackluster news day, which isn’t a bad thing as we consolidate some of those big recent gains stocks have had.

Stocks rallied last week as Friday’s May jobs report signaled to some investors that the long-anticipated recession may no longer be in the cards for the economy — or at least pushed off until 2024 1. The passage of the debt ceiling bill also boosted investor sentiment.

Despite recent moves, worries persist over 2023′s narrow stock market rally, led by just a handful of tech names, and whether there could be an intermediate-term correction if breadth fails to improve.

As long as the US economy continues to chug along and doesn’t show any signs of recession —which so far it hasn’t — the rest of the market can play catch-up.