NEW YORK, New York - U.S. investors and traders were pessimistic in their views on Monday. The broader market was weaker with the Dow Jones trading well down after reaching a record high on Friday.

Tech stocks were not so downbeat, helped by a rise in Nvidia, which reports earnings on Wednesday.

"A lot of the gains that we saw on Friday were the result of short covering, because I think people were very worried that the Fed would basically say, ‘We're not cutting for the rest of the year,'" CFRA Research chief investment strategist Sam Stovall told CNBC Monday. "We have so much stuff between now and September 17 that while we benefited from the enthusiasm on Friday, we still have a lot that we have to endure before we are convinced that the Fed will be cutting rates," he said.

The Dow Jones Industrial Average experienced the steepest decline among its peers. The blue-chip index plummeted 349.27 points, or 0.77 percent, to close at 45,282.47.

The broader S&P 500 also finished firmly in negative territory, shedding 27.59 points. The decline represented a loss of 0.43 percent, bringing the index to a closing level of 6,439.32.

The tech-heavy Nasdaq Composite proved to be the most resilient, though it still ended the day with a loss. The index dipped 47.24 points, or 0.22 percent, to settle at 21,449.29.

Trading volumes were robust across the board, indicating widespread participation in the day's sell-off. The broad-based decline suggests investors were reacting to macroeconomic concerns or pausing after a recent rally, though a single catalyst for the pullback was not immediately clear. Market participants will be looking ahead to key economic data and corporate earnings later in the week for further direction.

Dollar Strengthens Against Major Peers, Euro Weakens Sharply  

The U.S. dollar posted broad gains in Monday's foreign exchange trading, firming against major currencies as market participants assessed the global interest rate outlook.

The dollar's strength was pronounced against the Japanese yen and the Swiss franc. The USD/JPY pair climbed to 147.82, a significant gain of 0.64 percent, continuing its recent upward trajectory. Similarly, the USD/CHF pair advanced to 0.8067, rising 0.75 percent on the session.

The euro howver was among the session's biggest losers against the greenback. The EUR/USD pair fell sharply to 1.1608, declining 0.93 percent. The British pound also softened against the dollar, with GBP/USD dipping 0.51 percent to 1.3451.

The commodity-linked Australian and New Zealand dollars also faced pressure. The AUD/USD pair edged down 0.14 percent to 0.6480, while the NZD/USD pair fell 0.21 percent to 0.5848.

The U.S. dollar gained ground against the Canadian dollar, with USD/CAD rising 0.29 percent to 1.3859.

Global Stock Markets Deliver a Mixed Message on Monday

World stock markets presented a fractured picture on Monday, with sharp gains in Greater China contrasting with declines in Europe, while other major indices saw modest, positive movement.

The day's most impressive performances came from Asia. Taiwan's TWSE Capitalized Weighted Stock Index surged 2.16 percent, a gain of over 512 points to close at 24,277.38. Hong Kong's Hang Seng Index was not far behind, jumping 1.94 percent or 490.77 points to settle at 25,829.91. Mainland China's SSE Composite Index also posted a strong gain, rising 1.51 percent to 3,883.56.

The positive sentiment was broad across the Asia-Pacific region. South Korea's KOSPI Composite advanced 1.30 percent, and Indonesia's IDX Composite climbed 0.87 percent. Japan's Nikkei 225 continued its record-breaking run, adding 0.41 percent to close at 42,807.82.

Australia's benchmarks saw slight gains, with the S&P/ASX 200 up 0.06 percent and the broader All Ordinaries index rising 0.12 percent. New Zealand's S&P/NZX 50 increased by 0.28 percent. In Southeast Asia, Singapore's STI Index edged up 0.08 percent, and Malaysia's FTSE Bursa Malaysia KLCI gained 0.31 percent.

India's S&P BSE SENSEX continued its upward trend, adding 0.40 percent to close at a new high of 81,635.91.

The mood was decidedly different in Europe. France's CAC 40 was the session's biggest loser among major indices, tumbling 1.59 percent to 7,843.04. Germany's DAX also finished in the red, declining 0.37 percent.

Canada's main stock index mirrored the downward trend. The S&P/TSX Composite index retreated by 163.19 points, a drop of 0.58 percent, ending the session at 28,169.94.

Britain's FTSE 100 was a rare bright spot in the region, managing a slight gain of 0.13 percent.

Other global markets were mixed. Israel's TA-125 was virtually unchanged, dipping a negligible 0.06 percent. Egypt's EGX 30 saw a minuscule decline of 0.00 percent. The ^JN0U.JO index closed down 0.39 percent.

(Photo credit: Big News Network news agency).