Early gains on Wall Street fizzled out by afternoon on Monday as losses in technology and healthcare stocks overshadowed increased expectations of stimulus from central banks around the world. Microsoft Corp and Amgen Inc were among the biggest drags on the S&P 500 and Nasdaq.
Amgen fell 3.19% after analysts raised questions about data on the company's lung cancer drug, dragging the healthcare sector down 0.94%. Lenders, however, were up on broad gains in US Treasury yields on risings bets of an interest rate cut in the US Federal Reserve's September meeting. Financial stocks rose 1.20%, providing the biggest boost to the S&P 500, with banks gaining 2.62%. Technology stocks fell more than 1% and were the biggest drag on the benchmark index.
"The markets are continuing last week's positive sentiment but with a reduction in pessimism and fear," said Scott Brown chief economist at Raymond James in St. Petersburg, Florida. Stocks gained last week on easing US-China trade negotiations and global political tensions as well as increased hopes of an interest rate cut.
Energy stocks led gains among the 11 major S&P 500 sectors with a 1.41% rise, as oil prices got a boost from the new Saudi energy minister committing to output cuts. At 13:11 p.m. ET, the Dow Jones Industrial Average was up 20.95 points, or 0.08%, at 26,818.41, the S&P 500 was down 2.34 points, or 0.08%, at 2,976.37 and the Nasdaq Composite was down 22.49 points, or 0.28%, at 8,080.59.
Among other stocks, AT&T Inc gained 2.61% after shareholder Elliott Management Corp disclosed a $3.2 billion stake in the company and pushed for changes. Boeing Co fell 0.84% after it suspended load testing of its new widebody 777X aircraft over the weekend as media reports said a cargo door failed in a ground stress test.