At the close of trade, the Dow Jones Industrial Average index stumbled 482.78 points, or 1.4%, to 33,947.10. The S&P500 index decreased 72.86 points, or 1.79%, to 3,998.84. The tech-heavy Nasdaq Composite Index declined 221.56 points, or 1.93%, to 11,239.94.
All 11 sectors of the S&P500 index declined, with energy, consumer discretionary, financials, materials, industrials, and information technology issues being notable losers.
The hotter-than-expected reading of November ISM Services data came on the heels of a survey last week that showed stronger-than-expected job and wage growth in November, challenging hopes that the Fed might slow the pace and intensity of its rate hikes amid recent signs of ebbing inflation.
The Fed is meeting next week for its last policy confab for the year. The expectation is that it will raise rates again, but more likely by a smaller half-percentage point increment than it has at each of its last four meetings.
Among individual stocks, Shares of VF Corporation, the maker of Timberland and other apparel, fell more than 7% after it warned on its profit outlook and launched a search for a new chief executive officer.
ECONOMIC NEWS: The Institute for Supply Management (ISM) said on Monday that its non-manufacturing PMI increased to 56.5 last month from 54.4 in October. A reading above 50 indicates expansion in the services sector, which accounts for more than two-thirds of U.S. economic activity.
Among Indian ADR, Tata Motors sank 3.8% to $25.55, ICICI Bank slid 1.5% to $22.86, INFOSYS was down 2.2% at $19.75, WNS Holdings declined 1% to $83.56, and Wipro was down 1.4% to $5.04. Dr Reddy's Labs sank 2.7% to $54.79 and Azure Power Global dropped 5.5% to $5.03. HDFC Bank added 0.3% to $68.39.
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