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The S&P 500 lost 0.4% and retraced some of its gains. After fluctuating between a gain or a loss, the Dow Jones Industrial Average was unchanged. Tech-rich Nasdaq composite lost 0.6%.
Uncertain trading followed weeks of volatility in major indexes. Traders try to predict how stock valuations will react to the Federal Reserve's interest rate increases.
Wall Street is now enjoying two weeks of gains after a January stumble, which served partly as a "pressure relief device," according to Mark Hackett of Nationwide's chief of investment research.
He said that "some of the emotion we've been dealing in the first few weeks of this year has begun to ease". "You almost needed it; the expectations were so high."
S&P 500 lost 16.66 points to 4,483.87. The benchmark index now stands 6.5% lower than the record high set on Jan.
After gaining 1.39 points to 35.091.13, the Dow was basically flat. The Nasdaq lost 82.34 to 14,015.67
The small-company stocks outperformed the wider market. The Russell 2000 gained 10.24 points or 0.5% to 2,012.60.
The S&P 500 was hampered by technology and communication companies. Meta, Facebook's parent company, dropped 5.1%, while Alphabet, Google's parent company, dropped 2.9%. Microsoft fell 1.6%.
Solid gains were made by financial and energy companies. Chevron saw a 2.2% increase and Allstate saw a 2.2% rise.
Companies that deal with travel also saw growth. Carnival rose 7.8%, Royal Caribbean gained 84%, and American Airlines increased 5%.
The Treasury yields were generally lower. The 10-year Treasury yield fell to 1.92%, from 1.93% on Friday.
Investors continue to assess the impact of rising inflation for consumers and businesses, while being cautious about the Federal Reserve’s plans to combat inflation. Wall Street will receive a key update on inflation Thursday from the Labor Department's report about consumer prices for January.
To combat inflation, the Fed intends to increase interest rates. Investors anticipate the Fed's first rate hikes in March, but are cautious about the pace and amount of rate increases in 2022.
Investors will be busy reviewing the latest corporate reports this week. Meat producer Tyson Foods rose 12.2% after reporting strong results.
Pfizer and Walt Disney are just two of the many big companies that will be reporting their results this week. Twitter and Coca-Cola report on Thursday.
Several companies gained ground Monday on buyout news. Spirit Airlines jumped 17.2% after Frontier Airlines, the parent company of Frontier Airlines, agreed to purchase the carrier for $2.9 billion.
Peloton rose 20% following news that the treadmill and exercise machine company was being considered for a buyout by companies like Nike and Amazon. Since the pandemic, the company has been on an incredible roller-coaster ride. The stock rose more than 400% as COVID-19 imposed lockdowns and changed the focus of the workout from the gym to the home. It spent 2021 giving back almost all of its gains, as businesses reopened and people returned to the gyms.
Peloton shares have been volatile this year, particularly after January's reports that it was temporarily stopping production of its connected products due to waning consumer demand. Blackwells Capital, an activist investor, asked Peloton to fire John Foley, its CEO. The company was then offered the possibility of selling it within days.
