US benchmark equity indexes closed lower on Monday as investors assessed conflicting data on US services sector growth.
The Nasdaq decreased 0.7% to 17,844.24, the S&P 500 dropped 0.6% to 5,650.38, and the Dow Jones Industrial Average fell 0.2% to 41,218.83. Among sectors, energy and consumer discretionary paced the decliners with only consumer staples posting a gain.
US Treasury yields were up with the 10-year rate increasing 2.7 basis points to 4.3% and the two-year rate gaining 0.9 basis points to 3.8%.
June West Texas Intermediate crude oil decreased 2.2% to $57.01 a barrel.
In economic news, the ISM's purchasing managers' index rose to 51.6 in April from 50.8 in March. The consensus was for a decline to 50.3 in a survey compiled by Bloomberg.
"Regarding tariffs, respondents cited actual pricing impacts as concerns, more so than uncertainty and future pressures," said Steve Miller, chair of the ISM's services business survey committee.
S&P Global said its services PMI gauge dropped to 50.8 in April, the lowest since November 2023, from 54.4 in March. The consensus in a Bloomberg survey was for 51.2. The composite PMI output index dropped to 50.6 from 53.5.
"While tariff announcements mean manufacturing dominates the news, a worrying backstory is developing in the vastly larger services economy, where business activity and hiring have come closer to stalling in April amid plunging business confidence," said Chris Williamson, S&P Global Market Intelligence chief business economist
In company news, EQT (EQT) shares rose 3.2%, the second-biggest gain on the S&P. UBS Securities upgraded its rating on the stock to buy from neutral and raised the price target to $64 from $54.
Delta Air Lines (DAL) shares gained 3%. Seaport Global Securities boosted its price target on the stock to $65 from $50.
Zimmer Biomet (ZBH) shares fell 12%, the biggest decline on the S&P. The company reduced its full-year adjusted earnings outlook and reported a decline in Q1 EPS. Several analysts reduced their price target on the stock.
ON Semiconductor (ON) shares fell 8.4%, the second-largest drop on the S&P. The company reported lower Q1 non-GAAP earnings and revenue.
Gold increased 3% to $3,341 per troy ounce, while silver was up 1.2% to $32.63 per troy ounce.
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