U.S. stocks ended sharply lower on Monday as some traders took profits before the end of the year, dimming hopes for the “Santa Claus rally.”
The Santa rally speaks to a seasonal tendency for the S&P 500 to rise over the last five trading days of a calendar year and the first two trading days of the new year.
The Dow Jones Industrial Average shed 418.48 points, or 1%, to end at 42,573.73 for back-to-back losses, according to Dow Jones Market Data.
The S&P 500 declined 63.90 points, or 1.1%, to close at 5,906.94 for its third straight daily loss.
The Nasdaq Composite lost 235.25 points, or 1.2%, to finish at 19,486.78, also booking its third straight daily loss.