A broad sell-off handed the US stock market its biggest loss in more than four months Monday, pulling the major indexes below their recent record highs.
Technology stocks, the biggest gainers in 2017, accounted for much of the slide. Energy companies also fell as crude oil prices finished lower. Utilities and other rate-sensitive sectors declined as bond yields hit their highest level in almost four years.
Investors weighed the latest company earnings and deal news, including Keurig’s acquisition of Dr. Pepper Snapple and looked ahead to a busy week of corporate news and economic data.
On Friday, the stock market had its biggest single-day gain since March 2017.
‘‘It may just be we’ve had a really good run and people are taking profit off the table right now,’’ said Randy Frederick, a vice president at Charles Schwab.
The Standard & Poor’s 500 index fell 0.7 percent, to 2,853.53. The Dow Jones industrial average slipped 0.7 percent, to 26,439.48. The Nasdaq Composite lost 0.5 percent, to 7,466.51. The Russell 2000 index of smaller-company stocks gave up 0.6 percent, to 1,598.11.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.70 percent, the highest level in almost four years, from 2.66 percent late Friday.
The prospect for stronger economic growth has helped drive bond yields higher. As bond yields rise it puts pressure on yield-sensitive sectors: real estate investment trusts, telecoms, and utilities. The three sectors finished more than 1 percent lower Monday and are in the red for the year.
Investors face a busy week of potential market-moving corporate news and economic data the rest of this week. Several big-name companies are due to report quarterly results Wednesday and Thursday, including Apple, Amazon, Microsoft, Facebook and Google’s parent company Alphabet.
‘‘Combined, that’s 14.3 percent of the entire S&P 500 index in five companies -- $3.6 trillion in market cap -- so this is a very important week,’’ said Mike Baele, senior portfolio manager at US Bank Private Wealth Management.
About a quarter of the companies in the S&P 500 have reported results so far this earnings season, and some 65 percent of those have delivered results that exceeded financial analysts’ expectations, according to S&P Global Market Intelligence.
On Monday, Lockheed Martin added 1.9 percent after the defense contractor reported better-than-expected quarterly results.
Apple fell 2.1 percent amid growing investor worries the iPhone X has not been a hit with customers. Shares in the technology giant have been declining for several days, erasing billions of the company’s market capitalization. Apple reports its earnings Thursday.
Beyond earnings, the market will be sizing up new data on jobs, manufacturing, and consumer sentiment this week.
The Commerce Department said Monday that consumer spending rose 0.4 percent in December, a solid though slower pace than in November.
Also on investors’ radar: Tuesday night’s State of the Union address and a two-day meeting of the Federal Reserve’s policy committee that wraps up Wednesday.
The Fed has signaled it expects to raise its key short-term interest rate three times this year. But some investors speculated the growing strength in the US economy and labor market could prompt the central bank to perhaps forecast an extra rate increase this year.
As for President Trump’s address to the nation, investors will be listening for any insights on US trade policy, Baele said.
Traders welcomed a crop of corporate deals Monday, in addition to the Keurig-Dr Pepper deal.
KapStone Paper and Packaging soared 30.8 percent after it agreed to be bought by rival WestRock for $3.39 billion. WestRock slid 2.6 percent.
Benchmark US crude fell about 1 percent to $65.56 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, dropped 1.5 percent, to $69.46.