Stocks fell slightly on Monday on persistent concerns the Chinese government may tighten credit, which could hinder the global recovery from recession.
Bank shares dipped, with the KBW bank index <.BKX> down 0.59 percent, on caution ahead of Senate Banking Committee Chairman Christopher Dodd's revised financial regulation proposal expected later on Monday.
JPMorgan Chase & Co
The details on what the financial plan will look like could have some impact on financials, said Kurt Brunner, portfolio manager at Swarthmore Group in Philadelphia.
Energy shares were the top decliners on the S&P 500 as oil prices were pressured by a stronger U.S. dollar. The euro slid against the greenback on a lack of progress on a financial aid package for debt-strapped Greece.
The Dow Jones industrial average <.DJI> dipped 9.67 points, or 0.09 percent, to 10,615.02. The Standard & Poor's 500 Index <.SPX> dropped 2.91 points, or 0.25 percent, to 1,147.08. The Nasdaq Composite Index <.IXIC> fell 7.63 points, or 0.32 percent, to 2,360.03.
Shanghai's key stock index fell 1.2 percent to its lowest close in five weeks on Monday as investors expect China's central bank to step up monetary tightening measures in the wake of higher-than-expected inflation data released last week.
If the tightening happens it will be viewed negatively by the equities market as potentially hurting the growth engine, Brunner said.
Also weighing on the market was caution ahead of Tuesday's Federal Reserve monetary policy meeting, which is expected to hold interest rates near zero and reiterate the need for an extended period of exceptionally low rates.
But data gave some support to equities even as a gauge of manufacturing in New York state slipped in March, as the decline was slightly lower than expected. A separate report showed U.S. industrial output edged up 0.1 percent in February, likely restrained by severe winter weather.
Google slipped 2.6 percent to $564.44 while its main Chinese competitor, Baidu Inc
(Editing by Padraic Cassidy)