Most U.S. stocks drop after strong manufacturing data

The S&P 500 slipped 10.58 points, or 0.2%, from its all-time high to end at 5,243.77, the Dow Jones Industrial Average shed 240.52 points, or 0.6%, while the Nasdaq composite was an exception and gained 17.37, or 0.1%, to 16,396.83

Most U.S. stocks dropped on Monday after a surprisingly strong report on U.S. manufacturing cast doubts on how much interest rates can drop this year.

The S&P 500 slipped 10.58 points, or 0.2%, from its all-time high to end at 5,243.77. The Dow Jones Industrial Average shed 240.52 points, or 0.6%, from its record to 39,566.85. The Nasdaq composite was an exception and gained 17.37, or 0.1%, to 16,396.83.

FedEx dropped 3.3% after it said it did not extend its contract with the U.S. Postal Service to deliver air cargo domestically, which will end September 29. Donald Trump’s social media company, Trump Media & Technology Group, shed more than a fifth of its value in another frenetic day of trading. The company, whose main business is the Truth Social platform, said that it lost $58.2 million last year on just $4.1 million in revenue. Its stock slumped 21.5%.

Universal Health Services dipped 4% for one of the S&P 500’s larger losses.

Helping to keep the losses in check was Newmont. The miner's stock added 1.6% as the price of gold continues to set records.

In the bond market, Treasury yields rose after a report said U.S. manufacturing unexpectedly returned to growth last month. It snapped a 16-month run of contraction, per the Institute for Supply Management.

It is the latest evidence showing the U.S. economy remains strong despite high interest rates. That is a positive for the stock market because it can drive growth in profits for firms. But it can also keep upward pressure on inflation. That in turn could mean a more hesitant Fed when it comes to the cuts to interest rates that investors expect.