U.S. stocks fell on Monday as financials lagged, while a massive post-election rally eased, and investors kept an eye on surging oil prices ahead of a key OPEC meeting.
"I think the market is just taking a breather; investors are taking stock of where we've been," said Randy Warren, CIO at Warren Financial. "There's a lot of pessimism that the Trump rally is going to end, but I think there is no reason why it should."
The Dow Jones industrial average fell about 50 points, with Visa contributing the most losses. The S&P 500 closed about 0.5 percent lower, with financials falling around 1.4 percent. The Nasdaq composite fell about 0.6 percent. The Russell 2000, which is composed of small-cap stocks, closed about 1.3 percent lower, snapping a 15-day winning streak, its longest in 20 years.
"After three weeks of gains and a 15-day winning streak on the Russell 2000, we have to slow down," said Art Hogan, chief market strategist at Wunderlich Securities. "We got a perception that we're heading into a more pro-business administration."
The major U.S. equity indexes have also spiked since President-elect Donald Trump's surprising victory over Hillary Clinton, as investors' optimism for fiscal stimulus and tax cuts grew. Since the election, the Dow, S&P, Nasdaq and the Russell have staged a three-week winning streak, and have risen to new record highs.
Bruce Bittles, chief investment strategist at Baird, said in a Monday note that, "although the current rally has pushed stocks into an overbought condition, any weakness that could develop is expected to be limited since investors will be reluctant to take gains in December due to tax considerations."