Stocks shifted on Monday with gains in the technology sector unable to sustain a broader declining market, which began to rally last week amid the Fed's bold rate cut.
By mid-day, the Down Jones Industrial Average was off 31.5 points at 13,788.7, with 19 of its 30 components trading lower. Financial stocks lead the Dow declines.
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.
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.
Apple advanced 2.4 percent after Citi analyst Richard Gardner raised his price target on the stock to $185 from $160.
Motorola shares advanced 1.1 percent after the mobile-phone maker's upgrade by RBC Capital Markets to outperform from sector perform.
The S&P 500 was down 5.95 points at 1,519.80 and the tech-laden Nasdaq Composite slipped 3.57 points at 2,667.43.
Volume at the Nasdaq came to 1.3 billion shares, with decliners edging ahead of advancers 9 to 5.
At the New York Stock Exchange, 877 million shares were traded, with declining stocks ahead of decliners by roughly 5 to 3.
A labor strike against General Motors Corp. caused shares of the world's biggest automaker to pare gains.
GM rose 0.4 percent higher as United Auto Workers walked off their jobs at GM, declaring a strike after failed contract talks. Investors did not see the strike having an immediate impact.