Wall Street stocks closed lower on Monday as the previous week's strong jobs data dampened expectations that the Federal Reserve would cut interest rates by 50 basis points when rate-setters in the U.S. next met at the end of July.
Volume on United States exchanges was 5.74 billion shares, compared to the 6.77 billion average for the full session over the last 20 trading days.
The market rallied through much of June after the Federal Reserve signaled that it's prepared to cut interest rates to offset slowing global growth and the fallout from USA trade conflicts.
"That's kind of concerning the market if just from the standpoint of the market's done well and now it's a matter of, were Friday's numbers too positive, and might we not get the cuts investors were hoping for", said Alan Lancz, president of Alan B. Lancz & Associates Inc, an investment advisory firm, based in Toledo, Ohio.
Boeing Co's shares slipped 1.1% after Saudi Arabian budget airline flyadeal said it would not proceed with a provisional $5.9 billion order for the planemaker's grounded 737 MAX aircraft, instead opting for a fleet of Airbus A320 jets.
U.S. futures pointed to a lower opening for Wall Street, with E-Minis for the S&P500 at -0.2%.
The S&P 500 fell 14 points, or 0.5%, to 2,975.
A better-than-expected jobs report last Friday has dimmed hopes for more easing momentary policy by the US central bank.
Still, money markets are pricing in a 94% probability of a 25-basis-point rate cut at the Fed meeting on July 31, according to CME Group's FedWatch tool.
"We think a repeated lesson for stocks over the last 30 years has been that when easier policy collides with weaker growth, the latter usually matters more for returns".
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Deutsche Bank shares traded in the USA dropped 6.3% after the German bank announced a massive restructuring.
The Dow Jones Industrial Average fell 115.98 points, or 0.43 per cent, to 26,806.14, the S&P 500 lost 14.46 points, or 0.48 per cent, to 2,975.95 and the Nasdaq Composite dropped 63.41 points, or 0.78 per cent, to 8,098.38.
The dollar changed hands at 108.75 yen, having risen up to 108.81 yen in the previous session, its highest in more than a month.
The Fed opened the door for lower rates last month after saying it will "act as appropriate" to maintain the current USA economic expansion, which is the longest ever.
Fed chief Jerome Powell's comments in two-day testimony to Congress beginning on Wednesday will be watched to determine whether traders will continue to reduce bets for deep interest rate cuts, which could help the dollar continue its rebound against major currencies.
Japan's benchmark Nikkei 225 was flat at 21,526.22, while Australia's S&P/ASX 200 dipped 0.3% to 6,653.60.
The S&P 500 fell 16 points, or 0.5%, to 2,974.
But a strong jobs report indicates that Wall Street might have gotten ahead of itself.
The August crude contract was up 58 cents at US$58.09 per barrel and the August natural gas contract was down three cents at US$2.39 per mmBTU.