FKLI Related News

NEW YORK (Reuters) - Wall Street stocks fell on Monday as investors locked in gains on a recent rally ahead of possible policy action from the Federal Reserve later this week, while weakness in Intel shares weighed on the Nasdaq.

The benchmark S&P 500 index closed at highs last week not seen in nearly five years, motivating some investors to pull back from those gains Monday ahead of the Federal Reserve's decision on Thursday. "The markets are up a lot, so the short-term risks are on the downside," said Jim Awad, managing director at Zephyr Management in New York.

Investors are on guard against the unknown outcomes of several events this week, including a ruling by Germany's constitutional court on Wednesday on the legality of the euro zone's permanent financial rescue fund and the Fed decision on Thursday. Expectations for more stimulus from central banks in the United States and Europe have underpinned markets in recent weeks. The Fed looks set to launch a third round of bond purchases this week and economists said Friday's weak report on jobs growth for August was likely to convince the U.S. central bank a looser monetary policy was needed.

The Dow Jones industrial average (.DJI) ended down 52.35 points, or 0.39 percent, at 13,254.29. The Standard & Poor's 500 Index (.SPX) closed down 8.84 points, or 0.61 percent, at 1,429.08. The Nasdaq Composite Index (.IXIC) dropped 32.40 points, or 1.03 percent, to 3,104.02.

Investors sold some big-cap tech names that have done well all year. Worse-than-expected data on imports from China added to selling in the sector. Chinese import data showed a fall of 2.6 percent on the year in August, short of expectations for a 3.5 percent rise. Exports grew 2.7 percent, below forecasts for a 3 percent rise in a Reuters poll.

Oil rose on Monday in choppy trading as supportive expectations that the U.S. Federal Reserve will act to stimulate the economy were countered by weak data from China that raised concerns about demand for oil.

Malaysian shares opened lower, tracking declines on Wall Street Monday ahead of Thursday's FOMC meeting, as renewed concerns on Greece's deteriorating financial conditions comes back into focus. According to an analyst with a local brokerage, KLCI will find support at the 1600 psychological level but any violation of that level will mean a prolonged correction phase, possibly as long as one month.