The Nasdaq Composite fell 0.6% to 23,427.1, with the S&P 500 down 0.5% to 6,896.8 and the Dow Jones Industrial Average lower by 0.6% to 48,445.1.
The materials sector was the worst performer intraday, while energy and utilities led the gainers.
In company news, Intel (INTC) announced that it has completed the issuance and sale of approximately 214.8 million common shares to Nvidia (NVDA) for $5 billion in cash. Shares of Nvidia slid 1.7%, among the worst performers on the Dow and the Nasdaq.
Tesla (TSLA) shares dropped 2.2%, among the steepest decliners on the Nasdaq, after Reuters reported that the electric vehicle manufacturer's value of the 2023 supply deal with South Korean battery material producer, L&F, now stands at $7,386, down from an earlier estimate of $2.90 billion.
"Given this week's light economic calendar, internal momentum could be the main market storyline this week," Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley, was cited as saying in a Reuters report. "If stocks are going to close out another year of double-digit gains on a high note, they'll likely need tech to do much of the heavy lifting."
The US equity market will be closed on Thursday for New Year's Day. The holiday-shortened week's main economic releases include the S&P Case-Shiller home price indices and the minutes from the last Federal Open Market Committee meeting on Tuesday and jobless claims on Wednesday.
Silver broke above a record $80 per ounce in overnight trading before retreating 7.8% to $71.19 after midday Monday. Silver has risen by more than 155% year-to-date after starting this year at just above $20 per ounce, according to a note from DA Davidson. Gold futures also declined, down 4.5% to $4,347.72.
Gold and silver futures both slid after CME Group increased margin requirements for gold, silver, platinum, and palladium futures in response to recent volatility, The Wall Street Journal reported.
In economic news, pending home sales rose by 3.3% in November, following a 2.4% increase in October, according to the National Association of Realtors. The expectations were for 1% increase in a survey compiled by Bloomberg. The monthly sales index was up 2.6% from November 2024.
"Homebuyer momentum is building," said NAR Chief Economist Lawrence Yun. "The data shows the strongest performance of the year after accounting for seasonal factors, and the best performance in nearly three years, dating back to February 2023."
Most US Treasury yields fell, with the 10-year yield down two basis points to 4.11% and the two-year lower by 2.2 basis points to 3.46%.
West Texas Intermediate crude oil futures jumped 2.3% to $58.03 a barrel.
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