Investors booked profits on the second to last day of what has been a most bountiful trading year.
Tech stocks led the broad-based pullback Monday.
The Dow and S&P 500 retreated from their record highs, with the indexes falling more than half percent.
Spartan Capital Securities chief market economist, Peter Cardillo: SOUNDBITE: SPARTAN CAPITAL SECURITIES CHIEF MARKET ECONOMIST, PETER CARDILLO (ENGLISH) SAYING: "It's a little bit of profit taking.
The markets registered new record highs basically on a daily basis for such a long time without pulling back and it was looking tired." Even solid economic news couldn't prop up stocks.
Pending home sales, a barometer of the health of the housing market, rebounded in November.
Also that month: U.S. exports grew, shrinking the U.S. trade deficit more than economists had projected.
And the White House's trade advisor said Monday a trade deal with China would likely be signed next week.
Class="kln">Tesla shares tumbled from their all-time high.
The electric car maker started delivering its mass market Model 3 sedans that were built at its Shanghai factory.
Shares of its smaller rival, Nio, jumped more than 40%.
Higher demand for its electric vehicles helped the Chinese auto maker post rising quarterly revenue that BEAT?