Wall Street closed little changed on Monday as investors searched for fresh catalysts and showed concerns about fully-extended share prices after a five-week rally.
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The session, which closed slightly higher and opened slightly lower, followed a market-friendly move by the U.S. Federal Reserve last week that pushed the S&P 500 and Dow into positive territory for the year.
"I think people are starting to become concerned about valuation here," said Stephen Massocca, chief investment officer at Wedbush Equity Management in San Francisco. "Given the rally that we've had over last few weeks, stocks are extended and susceptible to bad news."
The Fed's decision to cut the number of expected rate hikes this year to two was among several recent measures by central banks to support growth and calm turmoil in global financial markets.
While the U.S. economy could continue to recover moderately, the market would react to negative surprises in European and Chinese data in coming weeks, said Lisa Kop, head of traditional investments at U.S. Bank Wealth Management in Minneapolis.
The Dow Jones industrial average <.DJI> closed up 21.57 points, or 0.12 percent, to 17,623.87, the S&P 500 <.SPX> gained 2.02 points, or 0.1 percent, to 2,051.6 and the Nasdaq Composite <.IXIC> had added 13.23 points, or 0.28 percent, to 4,808.87.
Crude prices edged up as data showed a drawdown at the Cushing, Oklahoma, delivery hub for U.S. crude and ahead of front-month contract expiry in U.S. crude futures.
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About 6.2 billion shares changed hands on U.S. exchanges, below the 8.2 billion average over the last 20 sessions.
Advancing issues outnumbered declining ones on the NYSE by 1,521 to 1,493, for a 1.02-to-1 ratio on the upside; on the Nasdaq, 1,445 issues rose and 1,368 fell for a 1.06-to-1 ratio favoring advancers.
The S&P 500 posted 17 new 52-week highs and no new lows; the Nasdaq recorded 39 new highs and 13 new lows.
(Additional reporting by Abhiram Nandakumar in Bengaluru; Editing by Don Sebastian and Nick Zieminski)