June 27 (UPI) — U.S. markets declined on Monday amid losses in tech stocks, halting momentum for a rally following a strong session on Friday.
The Dow Jones Industrial Average fell 62.42 points, or 0.2%, while the S&P 500 dropped 0.3% and the tech-heavy Nasdaq Composite declined 0.72%.
The 10-year treasury yield was on the rise Monday, which sent tech and consumer stocks on the decline with Google parent, Alphabet, sliding 1.82%, Amazon declining 2.78% and Best Buy falling 3.36%.
Video game stocks were also on the decline with Electronic Arts falling 3.53% and Take-Two dropping 3.3%.
Etsy led the decline on the S&P, falling 3.55% after it was downgraded by Needham and shares of Spirit Airlines dropped 7.95% as the company said it would accept a takeover bid from Frontier Group.
The S&P’s energy sector, however, rose 2.8% with Valero stock rising 8%, Devon Energy gaining 7.42% and Marathon Oil climbing 4.85%.
Despite Monday’s losses, investors projected some optimism that markets may have hit a bottom.
“As bad as [this year] has been for investors, the good news is previous years that were down at least 15% at the midway point of the year saw the final six months higher every single time, with an average return of nearly 24%,” LPL Financial chief market strategist Ryan Detrick said in a note.
J.P. Morgan strategist Marko Kolanovic also projected that U.S. equities could increase by as much as 7% this week as investors seek to rebalance their portfolios to end the first half of the year.
Investors are set to closely watch quarterly earnings results from Nike and Micron later this week as retailers like Target have said they have slowed orders in preparation for an economic slowdown.