Investing.com – Wall Street trader lower on Monday while M&A activity grabbed the headlines stateside but nerves remained high over Brexit worries and ahead of the Federal Reserve’s (Fed) pending policy meeting later in the week.
At 15:47GMT or 11:47AM ET, the Dow 30 retreated 59 points, or 0.33%, the S&P 500 fell 7 points, or 0.36%, while the tech-heavy NASDAQ Composite lost 27 points, or 0.55%.
In a session with no significant macro data, Monday’s headlines were filled with the news that Microsoft was acquiring LinkedIn for $26.2 billion.
The PC giant (NASDAQ:MSFT) led the decliners on the Dow though the social business network (NYSE:LNKD) surged 47%.
Twitter Inc (NYSE:TWTR) soared 6% on speculation that it could also be a buyout target.
In other M&A news, the maker of Norton antivirus Symantec (NASDAQ:SYMC) announced that it would pick up the private cybersecurity company Blue Coat for $4.65 billion.
Meanwhile, Verizon Communications Inc (NYSE:VZ) and AT&T (NYSE:T) were reported to prepare final bids for Yahoo's (NASDAQ:YHOO) core Internet assets.
In any case, investors were already looking ahead to the Federal Reserve’s policy meeting later this week.
The Fed is not expected to take action on interest rates at the conclusion of its two day policy meeting on Wednesday.
The central bank will also release its latest forecasts for economic growth and the dot plot for Fed official’s expectations for interest rates.
Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for any change in tone about the economy or future rate hikes.
Traders all but ruled out a rate hike in June after U.S. employment data earlier this month showed the economy added just 38,000 jobs last month, the smallest increase since September 2010.
On Monday, market players were pricing in just a 2% chance for a rate hike this week and 23% for July, according to CME Group's FedWatch tool. September odds were at about 37%.
The odds did not pass the 50% threshold until the December 14 decision with the probability currently at 59%.
In oil markets, prices extended overnight losses in North American trade on Monday, with the U.S. benchmark falling to a more than one-week low amid indications of increased domestic drilling activity.
On Friday, New York-traded oil prices sank $1.49, or 2.95%, after data showed the U.S oil rig count rose the second straight week last week, underlining concerns over growing supplies.
According to oilfield services provider Baker Hughes, the number of rigs drilling for oil in the U.S. increased by three last week to 328.
U.S. crude futures lost 0.35% to $48.90 by 15:51GMT, or 11:51AM ET, while Brent oil traded down 0.34% to $50.37.
Elsewhere, jitters ahead of Britain's June 23 referendum on European Union membership mounted after U.K. polls over the weekend suggested momentum for the campaign to leave the bloc, known as a Brexit, is gaining momentum.
European stock markets ended the day lower, with the benchmark Euro Stoxx 50 down 2% while London’s FTSE 100 fell 1%.