S&P 500 joins Dow in negative territory for 2015
Stocks fell and oil prices took a tumble Monday as the broad Standard & Poor's 500 stock index kicked off the final week of the year by slipping back into the red in a volatile year that has made it tough for U.S. stocks to make much headway.
The S&P 500 ended down 4.5 points, or 0.2%, to 2056.50 as it dropped back below its 2014 close of 2058.90. The benchmark large-company stock index is down more than 3% from its May 21 all-time closing high of 2130.82. The S&P 500 has posted positive returns six straight years as it struggles to extend the streak to seven calendar years in a row.
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The Dow Jones industrial average fell about 24 points, or 0.1% to 17,528.47 as it slipped further into negative territory for 2015. The Dow headed into Monday's session down 1.5% for 2015 and is at risk for its first negative year since 2008. The Nasdaq composite index closed down 0.2% to 5040.99 but is still up about 6% for the year.
Energy stocks led the declines as the recent uptick in oil prices also faltered. U.S. benchmark crude fell 3.3% to $36.85 a barrel.
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It has been a challenging year for U.S. stocks. Domestic equities have been hurt by questions regarding the timing of the Federal Reserve's first interest rate hike in nearly a decade (the Fed raised rates a quarter-point in mid-December), plunging oil prices, the negative impact of a strong dollar on sales and earnings of U.S. multinationals and fears related to the slowdown in China's economy, which is the world's second-biggest.
When it comes to performance this year, there have been winners and losers. While the large-company stocks in the S&P 500 are virtually unchanged from a year ago, blue chip stocks have lagged, tech stocks have shined the brightest and small-company shares have fared the worst.
U.S. stocks are coming off a strong holiday-shortened week, as the Dow rallied more than 100 points on three of the four trading days last week.
Wall Street is still hoping that the normal late-year rally, dubbed the Santa Claus Rally, will kick in this week. This time of year has historically been a seasonally strong period for stocks, as the market benefits from holiday-infused optimism and the benefit of a fresh influx of cash into the stock market as Americans put year-end bonuses to work.
Investors will be watching some key economic data releases, ranging from the December reading on consumer confidence Tuesday, October pending home sales on Wednesday and the December reading on manufacturing in the Chicago area on Thursday.