U.S. markets closed mostly lower on Monday, weighed down by continued weakness in technology stocks as concerns over the outlook for artificial intelligence once again pressured the sector. Meanwhile, investors remained cautious ahead of the upcoming U.S. midterm elections. However, traders largely overlooked a report released by the Institute for Supply Management (ISM), which showed that U.S. manufacturing activity increased more than expected in October. The ISM said its manufacturing PMI rose to 55.5 in October after edging down to 54.5 in September, with a reading above 50 indicating growth. Street had expected the index to inch up to 54.6.
On the sectoral front, computer hardware stocks were among the worst performers in the technology sector, with the NYSE Arca Computer Hardware Index plunging 5.5 percent to its lowest closing level in three months. Semiconductor, networking, and software stocks also came under significant selling pressure, recording notable losses during the trading session.
Nasdaq decreased by 272.63 points or 1.07 percent to 25,164.36 and S&P 500 declined by 38.67 points or 0.51 percent to 7,541.4, while Dow Jones Industrial Average increased by 213.67 points or 0.41 percent to 51,983.98.