U.S. stocks fell sharply on Monday, with benchmarks retreating from records and the energy sector slammed as the price of crude fell below $63 a barrel for the first time since July 2009.
“We’re seeing a last gasp pullback in energy, and that 13 percent of the S&P 500 that is represented by energy companies,” said Art Hogan, chief market strategist at Wunderlich Securities.
“Over the near term, it’s a big help for the consumer, who haven’t had any income or wage growth in a while. If it trades below $60 for months, I would think that would be problematic,” Bruce Bittles, chief investment strategist at RW Baird & Co., said of crude’s ongoing decline.
Crude for January delivery fell $2.79, or 4.2 percent, to settle at $63.05 a barrel.
Apple fell sharply, with the consumer-technology maker leading the technology sector lower.
Chinese overseas shipments climbed 4.7 percent from a year earlier in November, the customs administration said.
Separately, Japan’s economy contracted more than anticipated in the third quarter.
The S&P 500 fell 14.93 points, or 0.7 percent, to 2,060.44, with energy and materials falling hardest and utilities and financials faring best among its 10 major industry groups.
The Nasdaq shed 40.06 points, or 0.8 percent, to 4,740.69.
For every share rising, more than two dropped on the New York Stock Exchange, where 743 million shares traded. Composite volume neared 3.7 billion.