NEW YORK, Sept 8 (Reuters) - The Dow and S&P 500 are lower on Monday, pulling back after a five-week rally, though that upward momentum is still seen as intact and strength in technology shares is lifting the Nasdaq.
Equities have risen for five straight weeks, and pronounced further upside may be limited given few domestic catalysts. Still, accommodative monetary policies from the Federal Reserve - including bond purchases and low interest rates - is expected to continue generating a positive environment for stocks, which haven’t undergone a prolonged pullback in months.
“The trend is definitely still up as we continue to benefit from low rates, which has been driving money into the market for years,” says Bruce Bittles, chief investment strategist at Robert W. Baird & Co in Nashville. “After a five-week rally, a drop of two points isn’t anything to be concerned about.”
Tech shares are the strongest of the day, with the S&P information technology sector up 0.4 percent, the top-performing sector on the day. Yahoo Inc is up 3.2 percent at $40.86 as the S&P’s biggest percentage gainer. Semiconductor stocks are up 0.6 percent.
The Dow Jones industrial average is falling 16.33 points, or 0.1 percent, to 17,121.03, the S&P 500 is down 3.88 points, or 0.19 percent, to 2,003.83 and the Nasdaq Composite is adding 12.67 points, or 0.28 percent, to 4,595.57.
The largest percentage gainer on the New York Stock Exchange is Silver Spring Networks Inc, which is up 10.27 percent, while the largest percentage decliner is Coupons.com Inc, down 7.84 percent.
At the NYSE, among the most active stocks are Bank of America, up 1.87 percent to $16.32; Petroleo Brasil , down 1.50 percent to $19.09 and Ford Motor Co, down 1.98 percent to $16.80.
On the Nasdaq, Yahoo, Microsoft Corp - up 1.3 percent to $46.50 - and Apple Inc - up 0.1 percent to $99.07 - are among the most actively traded.
Declining issues are outnumbering advancing ones on the NYSE by 1,716 to 1,129, for a 1.52-to-1 ratio on the downside; on the Nasdaq, 1,417 issues are rising and 1,152 falling for a 1.23-to-1 ratio favoring advancers.
The broad S&P 500 index is posting 39 new 52-week highs and no new lows; the Nasdaq Composite is recording 62 new highs and 17 new lows. (Editing by Lisa Von Ahn, Chizu Nomiyama and Nick Zieminski)