U.S. stocks slipped from record levels to start the week on Monday as the weakness in the technology sector weighed on the broader market.
The Dow Jones Industrial Average fell 200 points from a record high, while the S&P 500 fell 0.6% after closing at a fresh high on Friday. The tech-heavy Nasdaq Composite lost 1.2%.
Bitcoin was slammed over the weekend after hitting an all-time high of $64,841 Wednesday morning, according to data from Coin Metrics. At one point, it was down 19% from that record over the weekend before recovering. The cryptocurrency was last at $56,450 on Monday.
Tesla, a holder of bitcoin, was down more than 4%. Coinbase, which just made its public debut last week, fell more than 3%.
“Whenever a headline grabbing asset sees a big decline at a time when the broad market stands at an expensive level, it usually has a negative impact on the stock market even if it’s only short-lived,” said Matt Maley, chief market strategist at Miller Tabak.
Many bank shares were lower as investors continued to take profits following big earnings from the group last week. Goldman Sachs fell 1.3%, while Wells Fargo dipped 0.3%. JPMorgan also traded in the red.
Coca-Cola shares rose after the consumer giant reported better-than-expected earnings and revenue. The company also said demand in March has returned to pre-pandemic levels.
Stocks are coming off a week of gains as earnings topped estimates and strong economic data lifted the major averages. The S&P and Dow advanced 1.38% and 1.18% last week respectively for their fourth straight week of gains, while the Nasdaq posted its third positive week in a row.
Despite stocks trading around record levels, UBS on Friday lifted its forecast for the year. The firm now envisions the S&P 500 ending 2021 at 4,400, which is roughly 5% above where the benchmark index closed on Friday.
“While investing at all-time highs may be daunting for some, we believe there is more upside ahead,” the firm wrote in a note to clients. “Following two rounds of stimulus deployed in the quarter and the ongoing vaccination effort, there is growing evidence that U.S. economic activity is picking up. The latest jobs data, business sentiment readings, and retail sales all point to a strong recovery.”
On the coronavirus front, White House chief medical advisor Dr. Anthony Fauci said he expects the U.S. will resume administration of the Johnson & Johnson vaccine. The Food and Drug Administration asked states last week to temporarily halt using the single dose vaccine “out of an abundance of caution” after six women developed a rare blood-clotting disorder.
“My estimate is that we will continue to use it in some form,” Fauci said Sunday during an interview on NBC’s “Meet the Press.” “I doubt very seriously if they just cancel it. I don’t think that’s going to happen. I do think that there will likely be some sort of warning or restriction or risk assessment.”
Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign up to start a free trial today