U.S. stocks closed little changed on Monday after rising dramatically the week before and a decline in the technology sector offset a steep rise in financial stocks as investors bet on higher interest rates.
After choppy trading late in the session, the Dow ended at a record high while the S&P 500 and the Nasdaq Composite dipped.
The tech-heavy Nasdaq Composite has been under pressure since the Nov. 8 election as investors poured money into sectors such as financials, industrials and energy, which are seen benefiting from President-elect Donald Trump's policies.
The financial index rose 2.3 percent, with banks including Bank of America JPMorgan providing the biggest boost. The index has risen 10.8 percent since the election on hopes of deregulation and higher interest rates.
The Dow Jones industrial average closed up 21.03 points, or 0.11 percent, to 18,868.69, the S&P 500 lost 0.25 points, or 0.01 percent, to 2,164.2 and the Nasdaq Composite dropped 18.72 points, or 0.36 percent, to 5,218.40.
The U.S. Federal Reserve is widely expected to raise interest rates at its December meeting, with traders pricing in a 91-percent chance, according to CME Group's FedWatch tool.
The U.S. dollar scaled an eleven-month peak on Tuesday and Treasury yields extended their rise as investors braced for higher inflation in the United States amid expectations of fiscally expansionary polices under Donald Trump's presidency.
The risks of faster-than-expected Federal Reserve rate increases have dragged on emerging market assets, particularly equities and currencies, which have benefited from large capital inflows.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was flat in early trades while Australian stocks were off 0.5 percent.
Reference: Reuters, Bloomberg
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