U.S. stocks end mostly lower after an early rally evaporates

Stocks closed mostly lower on Wall Street on Monday after an early rally faded, extending the market’s recent pullback from record highs.

The S&P 500 fell 0.4% after having been up 0.9% in the early going. The reversal handed the benchmark index its fourth straight decline, something that hasn’t happened since September. Losses in the financial, industrial and healthcare sectors accounted for much of the decline, outweighing gains by technology stocks and companies that rely on consumer spending. Treasury yields were mostly higher, a sign of optimism in the economy.

Stocks initially headed higher as Americans began receiving the country’s first vaccinations against COVID-19, a process that’s expected to take months. Meanwhile, investors are still waiting to see whether Congress can break a logjam on delivering more aid to people, businesses and local governments affected by the coronavirus pandemic.

“To a large degree, we’re in a wait-and-see mode,” said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. “The good news is the vaccine is being distributed, which suggests we’re on the road to recovery.”

The S&P 500 fell 15.97 points (0.4%) to 3,647.49. The index declined 1% last week, its worst weekly performance since Halloween. The Dow Jones Industrial Average dropped 184.82 points (0.6%) to 29,861.55. The Nasdaq rose 62.17 (0.5%) to 12,440.04. Smaller companies held up better than their larger rivals, an indication that investors are feeling more confident about the economy’s prospects as the Russell 2000 index gained 2.16 (0.1%) to 1,913.86.