The S&P 500 started the week slightly lower Monday as investors rotated out of mega-cap technology stocks and into energy and financial shares.
The major index ticked down 0.1%. The Dow Jones Industrial Average inched up 0.1%. The tech-heavy Nasdaq Composite fell 0.3%.
Energy stocks boomed in the premarket as WTI crude oil topped $82 a barrel before pulling back from session highs. The U.S. oil benchmark was still up nearly 2% at $80.87.
Bank stocks like JPMorgan gained in early morning trading ahead of earnings on Wednesday.
Shares of Merck gained in the premarket after the drug maker asked the Food and Drug Administration to authorize emergency use of its antiviral Covid pill.
Meanwhile, Big Tech names Facebook, Apple, Amazon, Microsoft and Alphabet were weak in the premarket.
Goldman on Monday cut its economic growth forecast. The firm lowered its 2022 growth estimate to 4% from 4.4% and took its 2021 estimate down a tick to 5.6% from 5.7%. The firm cited the expiration of fiscal support from Congress and a slower-than-expected recovery in consumer spending, specifically services.
The U.S. bond market is closed Monday for Columbus Day.
This week, major banks will kick off their third-quarter earnings reports. JPMorgan kicks it off on Wednesday, with Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citigroup following later in the week. Delta Airlines and Walgreens Boots Alliance reports are also on deck.
Analysts estimate an earnings growth rate of 27.6% for the S&P 500 in the third quarter, which would be the third-highest growth rate since 2010.
After a 4.8% loss in September, the S&P 500 is now up about 2% for the month of October and sits about 3% from its record.