Stocks closed lower on Wall Street after a big jump last week on hopes for interest rate cuts from the Federal Reserve. The S&P 500 fell 0.4% Monday.

By Noel Randewich (Reuters) -Wall Street stocks ended lower on Monday as investors parsed the outlook for U.S. interest rates and looked ahead to AI chipmaker Nvidia's quarterly earnings this week while digesting a rally on Friday that lifted the Dow Jones Industrial Average to a record high close.

The blue-chip Dow ( DJI) led all of the major averages lower as it ended in the red by 0.7%. At the same time, the benchmark S&P 500 ( SP500) closed lower by 0.4% and the tech focused Nasdaq Composite ( COMP:IND) handed back 0.2%.