Stocks slipped on Monday as concern about the impact of the housing slump and credit squeeze hurt shares of financial companies.
Shares of energy companies also declined as oil prices edged lower.
Citigroup and other banks fell on fears there could be more upheaval from the subprime mortgage sector after sources familiar with the situation said that Germany's Deutsche Bank could take a $2.4 billion hit to its quarterly profit as a result of the credit market turmoil.
Citigroup fell almost 1.6 percent to $46.76, while U.S.-traded shares of Deutsche Bank slid 2.2 percent to $126.34.
The Dow Jones industrial average was down 24.47 points, or 0.18 percent, at 13,795.72. The Standard & Poor's 500 Index was down 4.53 points, or 0.30 percent, at 1,521.22. The Nasdaq Composite Index was down 1.20 points, or 0.04 percent, at 2,670.02.
People aren't convinced these financials are out of the water yet, said Todd Leone, head of listed trading at Cowen & Co. in New York. The rate cut doesn't solve all of the problems. The Federal Reserve cut benchmark interest rates last Tuesday by a half percentage point.
Stocks reversed earlier gains as an advance in technology stocks lost steam. Technology shares gained as investors bet the recent cut in interest rates would keep the economy growing and spur business spending.
A labor strike against General Motors Corp. caused shares of the world's biggest automaker to pare gains.
The United Auto Workers union went on strike against GM beginning on Monday as negotiators for a new contract were bargaining over the company's proposed cuts in health-care costs and union demands to keep U.S. production jobs.
GM shares rose 0.4 percent to $35.01 on the New York Stock Exchange and investors did not see the strike having an immediate impact.
Shares of Exxon Mobil Corp. were down 0.6 percent at $91.77.