The Dow Jones Industrial Average climbed Monday as investors sold big technology names in favor of other sectors such as banks and energy.

The Dow advanced 260.88 points, or 0.67%, to close at 39,411.21. The S&P 500 slid 0.31% to 5,447.87, while the tech-heavy Nasdaq Composite declined 1.09% to 17,496.82. It was the worst day since April for the Nasdaq.

Information technology was the biggest declining S&P 500 sector for the day, falling more than 2%. Meanwhile, energy advanced 2.7%, and financials and utilities were up roughly 1%. Dow member JPMorgan Chase gained 1.3%, while Goldman Sachs and Chevron climbed more than 2% each.

Nvidia fell about 6.7%, adding to its 4% decline last week that snapped an eight-week winning streak. The pullback occurred after Nvidia briefly dethroned Microsoft as the most valuable company in the U.S. Chart analysts also pointed to bearish patterns in Nvidia's recent trading.

Despite the selloff, shares are still up nearly 140% for the year.

The pullback in Nvidia is "pretty healthy," according to Larry Tentarelli, chief technical strategist at Blue Chip Daily Trend Report.

"Last week and now, we're seeing a healthy rotation. This is actually a really nice pause in tech, and a rotation back into some of the other sectors that have been pulling back," he said.

The enthusiasm surrounding artificial intelligence has lifted the market significantly this year even as investors grappled with shifting expectations for rate cuts and a slowing economy. The S&P 500 has advanced 14% this year after notching 31 record closes. 

Investors will receive key inflation data this week in the form of May's personal consumption expenditure data. The Federal Reserve's preferred inflation gauge is set to be released Friday.

Stocks are coming off a record-setting week, with the S&P 500 and Nasdaq notching fresh all-time highs as Wall Street heads into the final week of June and the end of the first half of 2024.

Dow closes higher Monday

The Dow Jones Industrial Average rose 260.88 points, or 0.67%, during Monday's trading session.

Meanwhile, the S&P 500 and Nasdaq Composite fell 0.31% and 1.09%, respectively.

— Hakyung Kim

Dow on pace for negative quarter

The Dow Jones Industrial Average is down 1% quarter to date. If the 30-stock index does end in the red, this would mark its first negative quarter in the last three. Intel and Salesforce, which are each down more than 30% and 19% for the quarter, led the Dow lower.

Meanwhile, the S&P 500 and Nasdaq are up 4% and 7.3% for the quarter, respectively.

— Hakyung Kim

Gold could rally to $3,000 over the next 12-18 months, according to Bank of America

Gold prices could hit $3,000 per ounce over the next 12 to 18 months if demand increases among large institutional investors, according to Bank of America commodity strategists.

"We believe gold can hit $3,000/oz over the next 12-18 months, although flows do not justify that price level right now," the strategists wrote. "Achieving this would require non-commercial demand to pick up from current levels, which in turn needs a Fed rate cut to happen."

— Spencer Kimball

Dow outperforms

The Dow broke away from the other major indexes on Monday, boosted by Goldman Sachs and other rallying names.

The blue-chip average added more than 250 points in afternoon trading, a gain that equates to over 0.7%. The S&P 500 traded near its flatline, while the Nasdaq Composite slipped 0.7%.

Goldman Sachs added around 8 of those points. Amgen and United Health each contributed more than 5 points.

In all, more than two out of every three Dow members tracked for gains. Home Depot and Salesforce were among the small group of laggards, with each slipping by more than 3 points.

— Alex Harring

Fed's Daly says there's 'more work to do' before cutting rates

San Francisco Federal Reserve President Mary Daly on Monday said the central bank has made progress in its efforts to bring inflation down but can't let up yet.

"We've made a lot of progress, but there is still work to do," Daly said in remarks for a speech in her home district. "Monetary policy is working, but we need to finish the job."

There are multiple scenarios left to play out, with each in "the realm of reasonable," she added. They include a slow decline in inflation that would require a higher-for-longer approach on interest rates; a faster decline that would necessitate cuts, or a "gradual decrease and a rebalancing in the labor market, which would mean "we can normalize policy over time, as many expect."

"We need to be ready to respond to however the economy evolves," Daly said.

—Jeff Cox

Affirm could rally 40%, according to Goldman Sachs

Affirm's best-in-class fundamentals are poised to give it a competitive edge over its peers, according to Goldman Sachs.

The bank assumed coverage of the stock at a buy rating and a $42 price target, which implies that shares could rally 40% from here.

As one catalyst, analyst Will Nance pointed to Affirm's differentiated approach to underwriting. Additional strengths include the company's track record of managing its revenue less transaction costs margins.

CNBC Pro subscribers can read the full story here.

— Lisa Kailai Han

Oil prices rise 1% as Israel-Lebanon tensions simmer

Crude oil futures rose 1% Monday and are on pace to post a gain for the month, as signs point to strengthening gasoline demand in the US and geopolitical tensions flare again in the Middle East.

"The chief underlying reason behind the price strength, nonetheless, is the growing confidence that global oil inventories will inevitably plunge during the summer in the northern hemisphere," Tamas Varga, an analyst with oil broker PVM, said in a note Monday.

Ryan McKay, senior commodity strategist at TD Securities, said supply risks are now back in focus as tensions are building on the Israel-Lebanon border. Israel and the Iran-backed militia group Hezbollah have traded threats of war in recent weeks.

— Spencer Kimball

A tech sell-off could be 'more dramatic' due to CTA positioning, Bank of America says

Further signs of weakness in large tech stocks could spur a rash of selling by some large trading firms, according to Bank of America.

Analyst Chintan Kotecha said in a note to clients that commodity trading advisors — big players in the futures contract market — are unbalanced on Nasdaq 100 positions and could be quick to sell if there is a pullback.

"According to our models, CTAs are likely now back to very stretched levels of long positioning in NASDAQ-100 futures. With positioning at these levels, stop loss triggers become tighter and with the last two days' declines our models estimate pressure for CTA unwinds starting at levels 2.8% lower from Friday's close," the note said.

The CTA positioning, combined with the rising popularity of leveraged and inverse ETFs, could lead to "more dramatic 1-day drop," Kotecha wrote.

— Jesse Pound

Stocks making the biggest midday moves

Here are some of the names moving during midday trading:

• RXO — The stock soared nearly 23% after the freight company said it came to an agreement to purchase Coyote Logistics from UPS for more than $1 billion. UPS was up 1.5%.
• ResMed, Inspire Medical Systems — ResMed and Inspire Medical Systems, which manufacture devices to treat obstructive sleep apnea, tumbled 11% and 15%, respectively, following the news Friday news that Eli Lilly's weight loss drug tirzepatide reduced the severity of the condition. Eli Lilly's stock gained 2%.
• Alnylam Pharmaceuticals — Shares surged 35% after a late-stage study found that the therapeutics company's drug vutrisiran showed a statistically significant reduction in the number of deaths and cardiovascular events in patients with ATTR amyloidosis with cardiomyopathy.

To see more stocks making midday moves, read the full story here.

—Michelle Fox

Energy, financial stocks outperform S&P 500

Energy and financial stocks outperformed during Monday's session, boosting the S&P 500 sectors 2.3% and 1.3%, respectively.

SLB and APA Corp led the energy sectors gains, rallying nearly 4% each. Baker Hughes, Occidental Petroleum and Coterra Energy rose more than 3% each.

Regional bank stocks led the financials sector higher. Huntington Bancshares was the best performer, adding nearly 3%. FactSet Research, Synchrony Financial, KeyCorp, Comerica and Fifth Third Bancorp gained at least 2% each. Goldman Sachs added 2%.

The rally in regional banks stocks lifted the SPDR S&P Regional Bank ETF more than 2%.

— Samantha Subin

Crypto stocks fall as bitcoin continues its descent to $60,000

Stocks tied to the price of bitcoin fell on Monday as the cryptocurrency took another leg down to $60,000, the bottom of the tight range it's been stuck in since March.

Coinbase lost 5% and MicroStrategy dropped nearly 7%. The biggest mining stocks, Marathon Digital and Riot Platforms, retreated just 1% each. Other miners registered steeper losses.

The price of the flagship cryptocurrency was last down 5% at $60,724.45, according to Coin Metrics. It's on pace to end the month lower by 10%.

— Tanaya Macheel

Deutsche Bank forecasts market lull as tech stocks top out, risk appetite slips

Deutsche Bank thinks equities could be headed for a slight breather as a multitude of negative catalysts coalesce.

"Fast forwarding, we see conditions in place for another breather, this time with concerns spanning all three elements of our demand-supply framework," strategist Parag Thatte wrote in a June 21 note.

The strategists framework encompasses "a sharp but narrow jump in positioning to near the top of its historical band, driven by tech; rising risk appetite which has prompted a boom in equity inflows but now looks stretched; a temporary diminishing of buybacks again as blackout periods ramp up next week ahead of the Q2 earnings season."

— Brian Evans

31 stocks in the S&P 500 hit new 52-week highs

During Monday's trading session, 31 stocks in the S&P 500 index hit new 52-week highs.

Names that reached this milestone included:

• Alphabet A share trading all-time highs back to its IPO on Aug 19, 2004
• The TJX Companies trading at all-time highs back to IPO in 1987
• Colgate-Palmolive trading at all-time high levels back to its first listing on the NYSE in 1930, the company was founded in 1806
• Procter & Gamble trading at all-time high levels back to when it was first listed on the NYSE in 1891
• Walmart Stores trading at all-time high levels back to when it first began trading on the NYSE in Aug, 1972
• Ameriprise Financial trading at all-time highs back to its IPO in Oct, 2005
• L3Harris Technologies trading at levels not seen since Dec, 2022
• Microsoft trading at all-time high levels back to its IPO in March, 1986
• Motorola Solutions trading at all-time highs back to its when it began trading as a separate entity post the Motorola Mobility split
• Bank of America trading at levels not seen since Apr, 2022

On the other hand, Solventum was trading at its all-time lows since its spinoff from 3M in March 2024.

— Lisa Kailai Han, Christopher Hayes

Nvidia sinks 6%, sits 15% off all-time high

Nvidia shares dropped nearly 6% Monday, building on a nearly 4% decline from last week that snapped eight straight weeks of wins.

With Monday's intraday losses, the chipmaker sits about 10% below its closing high and more than 15% off of its intraday high from earlier this month.

The stock is on pace for its worst day since April.

— Samantha Subin

RXO heads for best day ever as public company

Shares of freight company RXO were on track for their best day ever after purchasing the Coyote Logistics unit from UPS.

RXO jumped more than 19% in morning trading, putting it on pace for its biggest one-day gain since it spun off to become its own public company in late 2022. The Charlotte-based company paid more than $1 billion to UPS, whose shares traded up by around 2%.

Despite Monday's rally, shares of RXO have gained just about 4% in 2024.

— Alex Harring

Nvidia's stock chart hits potentially ominous milestone

BTIG technical strategist Jonathan Krinsky said in a note to clients Sunday that Nvidia traded at roughly 100% above its 200-day moving average last week, the biggest gap for any market-leading company since 1990.

The stock that came closest to hitting this metric was Cisco Systems near the peak of the dot-com bubble, according to BTIG.

— Jesse Pound

Cocoa prices fall 11%

Cocoa is down almost 11% to a low of $7,901 per tonne. This marked the commodity's lowest level since May 27, when it traded as low as $7,869. Prices came under pressure on concerns that second quarter global cocoa demand reports scheduled for release next month will indicate record-high prices leading to demand destruction.

Year to date, cocoa is still up 88.4%, on pace for its best year back through 1980.

— Hakyung Kim, Gina Francolla

Stocks open flat Monday

The S&P 500 little changed to start Monday's trading session.

The broad market index declined less than 0.1%.

Meanwhile, the Dow Jones Industrial Average added 0.2%, and the tech-heavy Nasdaq Composite fell 0.2%.

— Hakyung Kim

Fed's Goolsbee sees possibility that rates should come down

Chicago Federal Reserve President Austan Goolsbee said Monday that more soft readings on inflation would raise questions about whether interest rates are too high.

"If we get more months, like what we have just seen in the last month on inflation, coupled with slowing conditions in some of the other parts of the real economy, then you would have to start questioning should we remain as restrictive as we've been," Goolsbee said on CNBC's "Squawk Box."

Though he would not commit to when he thinks rate cuts would be appropriate, Goolsbee notehe is "hopeful" that the inflation rate is heading back to the Fed's 2% goal.

Goolsbee does not vote this year on the rate-setting Federal Open Market Committee.

—Jeff Cox

Stocks remain overbought despite record highs and cash remains on the sidelines, says BofA's Suttmeier

The lack of market volatility on Wall Street is tied to seasonality, the 2024 election overhang as well as a robust amount of cash sitting on the sidelines, according to Bank of America chief equity technical strategist Stephen Suttmeier.

"I think the market is continuing to run-up because not enough people are on board with it," told CNBC's Suttmeier told CNBC's "Squawkbox" on Monday. "We've been staying overbought...and people hate chasing overbought markets, and I think that's the reason overbought markets continue to grind higher."

Suttmeier noted that the S&P 500 could hit the 5,600 level in a potential rally, and also said the benchmark index could climb as much as 20% in 2024.

— Brian Evans

See the stocks moving in premarket trading

These are some of the stocks making the notable moves before the bell:

• ResMed — The medical device stock declined 11.8% on last week's news that Eli Lilly's tirzepatide weight loss drug reduced the severity of obstructive sleep apnea. Meanwhile, Eli Lilly ticked higher by around 1%.
• Carrier Global — The heating and ventilation stock climbed 2.3% on the heels of a Citi upgrade to buy from neutral.
• Anheuser-Busch InBev — Shares of the brewing company added nearly 3% following an upgrade at UBS to buy from neutral. 

See the full list here.

— Alex Harring

EU regulators say Apple breaches new tech rules

Regulators in the European Union said Monday that Apple is in breach of new tech rules because it doesn't let App Store customers be steered to third-party alternatives. Specifically, they said Apple was in breach of the new Digital Markets Act because App Store rules "prevent app developers from freely steering consumers to alternative channels for offers and content."

To be sure, shares were up slightly in the premarket even after the news.

— Fred Imbert

RXO rises after announcing Coyote Logistics acquisition

Shares of RXO rallied more than 11% after the trucking company announced it will acquire Coyote Logistics from UPS for more than $1 billion. The deal is expected to close by year-end.

"This acquisition will provide RXO with both immediate and long-term opportunities for revenue and earnings growth and will generate significant returns for shareholders," RXO chief executive Drew Wilkerson said in a statement.

— Fred Imbert

Bitcoin falls to start the week

Bitcoin fell more than 4% on Monday in a sudden move lower, pushing its June losses to 9%. Despite those declines, the digital currency remains more than 44% higher for the year.

— Fred Imbert

European markets open mixed

European stocks started the new trading week in mixed territory Monday, as investors await fresh economic data and interest rate decisions from the region.

The Stoxx 600 index was flat at 0.01% in opening trade with sectors and major bourses trading in opposite directions.

The U.K.'s FTSE index was down 0.04% at 8,235, Germany's DAX up 0.21% at 18,202, France's CAC 40 up 0.16% at 7,640 and Italy's FTSE MIB 0.5% higher at 33,475.

— Karen Gilchrist

Longest stretch without a 2% sell-off since the financial crisis

The S&P 500 has gone 377 days without a 2.05% sell-off. That's the longest stretch for the benchmark since the great financial crisis, according to FactSet data compiled by CNBC.

The index hasn't experienced a gain of at least 2.15% in that time either.

— Yun Li