The Nasdaq MarketSite in New York, June 9, 2023.
Michael Nagle | Bloomberg | Getty Images
Stocks slipped on Monday as investors questioned whether the market was getting ahead of itself following five straight winning weeks.
The blue-chip Dow Jones Industrial Average shed 83 points, or 0.2%. The S&P 500 lost 0.5%. The Nasdaq Composite declined 0.9% as investors sold Big Tech shares, which have led the market's gains this year.
As stocks stagnated, bitcoin and gold rallied to start the week. Bitcoin passed the $41,000 mark to notch a 19-month high, while gold reached its highest nominal intraday level ever.
Coinbase jumped more than 6% as bitcoin advanced. Coinbase, Marathon Digital, Riot Platforms and Microstrategy all gained more than 4%.
Alaska Airlines dropped more than 15% after it agreed to acquire rival Hawaiian Airlines for $1.9 billion. The move is part of Alaska's efforts to expand along the West Coast.
Monday's moves mark a pullback following a strong period in the market. Technology shares struggled in the session, with Nvidia, Alphabet and Netflix all sliding 2%.
"Investors are basically just digesting some of the recent gains," said Sam Stovall, chief investment strategist at CFRA Research. Some traders are saying: "Gee, we're still optimistic for the rest of the year. Maybe we went too far, too fast. Let's take advantage of some of these profits and lock them in, and see what other opportunities might arise."
The broad S&P 500 posted its highest close since March 2022 on Friday, bringing its year-to-date gains to almost 20%. The blue-chip Dow posted its first five-week win streak since 2021 last week and is up nearly 9% for the year. The tech-heavy Nasdaq Composite has climbed more than 34% in 2023.
The rebound in stocks since October came as investors increasingly bet that the Federal Reserve will start cutting interest rates next year. Investors maintained this belief last week even as Fed Chairman Jerome Powell tried to tamp down rate-cut expectations, saying it's "premature" to anticipate easing in policy.
November was the best month for the 30-stock Dow since October 2022. The S&P 500 and Nasdaq Composite both enjoyed their biggest monthly gains since July 2022.
"We are not getting bearish," Oppenheimer chief investment strategist John Stoltzfus told clients. But, we "can remember a tendency for powerful rallies from year end to be met with some questioning on any catalyst for profit taking without FOMO in the first quarter or second quarter of the new year."
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