NEW YORK (CNNMoney) -- Losses in the financial sector weighed on the stock market Monday, as investors remain nervous about the country's economic outlook.
A variety of recent reports have showed the recovery slowed in May, and given that the Federal Reserve's $600 billion stimulus runs out later this month, investors are especially jittery about the strength of the economy going forward.
"There's a sense that liquidity has helped the market a lot more than it has helped the economy, and there is a day of reckoning ahead," said Uri Landesman, president of Platinum Partners.
The S&P 500 () shed 14 points, or 1.1%, and the tech-heavy Nasdaq ( ) slipped 30 points, or 1.1%.
"Investors are really trading on emotions right now -- and unfortunately, most people are pessimistic," said Jack Ablin, chief investment officer of Harris Private Bank in Chicago.
Shares of the tech giant fell 1.6% after CEO Steve Jobs' unveiled iCloud , a free service that will store and sync documents, photos and other content across Apple devices. (Read Fortune's live blog of the event at the Worldwide Developers Conference in San Francisco.)
The biggest gainer in the S&P 500, Harley-Davidson (Fortune 500), saw its shares rise 2.8% after UBS Investment Research called the motorcycle maker a short-term buy, citing strong May sales.,
Also bucking the day's downward trend, Starbucks (Fortune 500) shares rose 1.7% after analysts at BMO Capital boosted their rating on the coffee retailer to "outperform." The analysts raised their price target for the stock to between $40 and $45 -- a more than 13% premium over Friday's closing price.,
Oil for July delivery slipped $1.21 to settle at $99.01 a barrel.
Gold futures for August delivery edged up $4.80 to settle at $1,547.20 an ounce.
World markets: European stocks ended their session mixed. Britain's FTSE 100 rose 0.2%, the DAX in Germany dipped 0.2% and France's CAC 40 fell 0.8%.
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