Stocks moved in opposite directions during trading on Monday, with the Dow and the S&P 500 adding to last week’s strong gains but the tech-heavy Nasdaq extending the sharp pullback seen last Friday.
The major averages ended the day mixed, as the Nasdaq climbed off its worst levels but still closed down 28.14 points or 0.4 percent at 7,328.85. The Dow advanced 190.87 points or 0.8 percent to 25,461.70 and the S&P 500 climbed 15.25 points or 0.6 percent to 2,738.31.
A notable drop by Apple (AAPL) weighed on the Nasdaq, with the tech giant slumping by 2.8 percent to a three-month closing low.
Apple extended the sell-off seen in the previous session after a report from Japan’s Nikkei newspaper said demand for the company’s iPhone XR appears to be disappointing.
Online retail giant Amazon (AMZN) also came under pressure after President Donald Trump told Axios his administration is looking into antitrust violations by the company.
Overall trading was somewhat subdued, however, with traders reluctant to make significant moves ahead of Tuesday’s highly anticipated midterm elections, which will decide control of both the House and Senate.
Democrats are seen as having a much better chance to claim a majority in the House than in the Senate, but controlling the lower chamber would still allow Democrats to hinder Trump’s agenda.
The Federal Reserve’s looming monetary policy announcement also kept some traders on the sidelines, with the Fed due to announce is latest decision on Thursday.
While the Fed is widely expected to leave interest rates unchanged, traders will keep a close eye on the accompanying statement for clues about an expected rate hike in December.
Meanwhile, traders largely shrugged off a report from the Institute for Supply Management showing a modest slowdown in the pace of growth in the service sector