Tech sector gains, but industrials slide
NEW YORK — U.S. stocks were split Monday as technology companies continued to climb, but Boeing and other industrial companies gave back some of the ground they won on Friday.
Companies like Apple and Alphabet, Google's parent company, and chipmakers including Micron Technology have led the market's recovery in recent weeks. Retailers including Amazon and Starbucks also made headway. The market was coming off its biggest gain in a month following the February jobs report, which showed strong hiring and moderate growth in wages.
Most of the stocks on the New York Stock Exchange ended the day higher.
Inflation has been the market's dominant concern over the last six weeks, and two more measuring sticks of inflation will be reported this week as the Labor Department discloses data on consumer prices Tuesday and producer prices on Wednesday. Prices paid by consumers jumped in January, and so did producer prices, which measure the cost of goods before they reach the consumer.
The Federal Reserve is gradually raising interest rates to keep inflation in check, and it expects to boost rates at least three times this year.
JJ Kinahan, chief market strategist for TD Ameritrade, said investors are looking at a lot of data but are really asking one question.
“If you think about the sell-offs that we've had, they've all been about ‘Are we going to get a fourth rate hike or aren't we?’ ” he said.
The S&P 500 index fell 3.55 points, or 0.1 percent, to 2,783.02. The Dow Jones industrial average declined 157.13 points, or 0.6 percent, to 25,178.61. Almost all of that loss came from three industrial stocks: Boeing, Caterpillar and United Technologies.
Industrial companies like aerospace and defense firms and machinery makers lost about half of what they gained during their rally Friday.
Industrial companies have bounced around since President Donald Trump said he would order tariffs on imported steel and aluminum.
That will mean higher costs for companies that use those metals to make machinery, and their sales could be hurt if other companies respond by placing tariffs on goods made in the U.S.
The February jobs report, which came out on Friday, eased investors' minds and sent stocks jumping on that day.
The market had tumbled in early February after the January jobs report, which showed a surprise spike in hourly wages.
Wall Street worried that that might be the start of faster inflation, which would lead the Federal Reserve to raise interest rates more rapidly. Higher rates slow down economic growth.