Wall Streets Slips Amid Health, Tech Woes

Technology and health care companies drove Wall Street lower on Monday as the market fell for a second straight day following a run of record highs.

The selling came amid growing speculation on Wall Street that an unexpectedly strong pick up in US employment growth last month may keep the Federal Reserve from aggressively cutting its benchmark interest rate. Many investors still expect a cut of a quarter of a percentage point, but fewer are now expecting a half-point reduction.

The market rallied through much of June after the central bank signalled that it was prepared to lower interest rates to offset slowing global growth and the fallout from US trade conflicts. The benchmark S&P 500 index closed at record highs three days in a row last week before stumbling after Friday's jobs report.

"We're getting an equity market that is taking a breather after five weeks of superb performance," said Bill Northey, senior investment director at US Bank Wealth Management. "And we're on the eve of the beginning of second quarter earnings season, so it's simply an equity market taking a breather between those events."

The S&P 500 fell 0.5 per cent, to 2,976. The index is now about 0.7 per cent below its all-time high set on Wednesday.

The Dow Jones Industrial Average slid 0.4 per cent, to 26,806. The Nasdaq composite lost 0.8 per cent, to 8,098.

Investors will be listening closely for any hints on the central bank's interest rate policy on Wednesday and Thursday, when Fed chief Jerome Powell delivers its semi-annual monetary report to Congress. (AP)