Late fade pushes S&P 500 below its record high

U.S. stock indexes closed mostly lower Monday, pulling the S&P 500 slightly below the all-time high it set last week, while nudging the Dow Jones Industrial Average to another record high.

The S&P 500 slipped 0.1 percent, recovering most of a 0.8 percent slide earlier in the day. Banks had some of the sharpest losses amid worries about how much pain they’ll incur following soured trades made by a major U.S. hedge fund. Technology stocks also fell broadly as China announced more tax breaks to bolster its own chip sector. Gains for Facebook and other market heavyweights helped to limit the S&P 500’s losses.

Treasury yields rose. A widely followed measure of nervousness in the stock market climbed 10.4 percent. The VIX index, which shows how much volatility traders are bracing for from the S&P 500, remains close to its lowest level since the pandemic rocked markets a year ago.

“It’s high, which indicates people are nervous, but it’s not panicky,” said Tom Martin, senior portfolio manager with Globalt Investments.

The S&P 500 dropped 3.45 points to 3,971.09. The Dow rose 98.49 points, or 0.3 percent, to 33,171.37. The S&P 500 climbed to an all-time high last week. The Nasdaq lost 79.08 points, or 0.6 percent, to 13,059.65.

The Russell 2000 index of smaller company stocks fell more than the broader market, shedding 62.80 points, or 2.8 percent, to 2,158.68. The index is on track to close out March with its first monthly loss since September, though it has still racked up bigger gains so far this year than the other major indexes.

The market’s movements mark the latest ebb for Wall Street, which has been mostly climbing in a series of stops and starts. Supporting the market have been rising expectations that a supercharged economic recovery is on the way thanks to COVID-19 vaccinations, immense spending by the U.S. government and continued low rates from the Federal Reserve. Weighing on stocks at the same time, though, are worries about a coming rise in inflation and possibly tooebullient prices across the market.

Several key reports on the economy are scheduled for this week, which could help show whether stocks deserve the lofty prices they’ve reached. Among the headliners is Friday’s jobs report, where economists expect to see a big acceleration in hiring.