U.S. stocks fell on Monday as investors booked profits after a strong run and several major banks announced large common stock offerings to repay government bailout funds.
The Nasdaq was little changed as buying into big-cap software makers offset profit-taking.
With government stress tests on big banks out of the way, investors opted to take gains on financial issues, sending JPMorgan Chase & Co
Banks are going to need to raise capital, that's weighing on the market. We climbed a wall of worry, bought the rumor, and now we're selling the news, said Marc Pado, market strategist at Cantor Fitzgerald in San Francisco.
Sometimes you just get a little reminder that as much as we do believe that the bottom is in on the economy and market, it's not always straight-up smooth sailing.
The Dow Jones industrial average <.DJI> dropped 102.03 points, or 1.19 percent, to 8,472.62. The Standard & Poor's 500 Index <.SPX> fell 11.93 points, or 1.28 percent, to 917.30. The Nasdaq Composite Index <.IXIC> dipped 5.63 points, or 0.33 percent, to 1,733.22.
Nasdaq losses were limited by reassuring comments from German business software maker SAP AG
Shares of SAP rival Oracle Corp,
Since reaching a 12-year low in early March, the Dow Jones industrial average is up 32.5 percent, and the S&P 500 is up 39.4 percent.
(Reporting by Edward Krudy; editing by Jeffrey Benkoe)