A broad wave of selling pulled had the S&P 500 down by 2% in the early going, but a late-afternoon burst of buying left the benchmark index with a loss of just 0.1%.
The latest pullback followed a sell-off last week as investors shifted holdings in anticipation that the Federal Reserve will raise interest rates this year, among other moves aimed at lowering inflation.
“It has the market a little bit rattled from the uncertainty of it all,” said J.J.
The Dow fell 162.79 points to 26,068.87, after having been down 591 points in the early going.
Higher interest rates make the stocks of expensive tech companies and other pricey growth companies less attractive to investors, which is why the sector has been slipping as bond yields rise.
Higher interest rates could help corral the high inflation sweeping the world, but they would also mark an end to the conditions that have put financial markets in “easy mode” for many investors since early 2020.
Industrial stocks, banks and a mix of companies that rely on consumer spending accounted for a big share of the S&P 500′s decline Monday.
On Wednesday, the Labor Department will release an update on how inflation is impacting prices with its Consumer Price Index for December.