NEW YORK (TheStreet) -- Stocks closed in the red on Monday as investors braced for next week's Federal Reserve meeting in the wake of Friday's stellar jobs report for May.
The S&P 500 was down 0.66%, the Dow Jones Industrial Average fell 0.47%, and the Nasdaq slipped 0.93%.
"The June meeting will provide a more comprehensive temperature check on the state of play at the Fed with a fresh set of economic projections," said Eric Green, head of U.S. rates and economic research at TD Securities.
"With the prevailing bias to raise rates twice in 2015 likely to remain intact, this meeting generally sets up poorly for a market barely willing to concede one rate hike by the end of 2015," he added.
The Fed will kick off its two-day meeting on Tuesday, June 16, and it will conclude mid-afternoon on Wednesday.
Economists widely expect the Fed to hold steady at crises-level near-zero rates in the June meeting, though show increased confidence in liftoff in September. As the Fed nears liftoff, equities will likely endure a rocky ride, says Deutsche Bank strategist David Bianco.
"This summer we see a high chance of a 5-9% dip as we think uncertainty on Fed actions in the face of
a tightening labor market could cause yields to climb higher," he wrote in a report.
China's economy continued to show signs of slowing as exports fell and imports declined at the sharpest rate in three months. Annual exports slid 2.5% while imports plummeted 17.6%. The latest data rallied calls for increased stimulus from the People's Bank of China. Hopes for monetary easing pushed the Shanghai Composite to close 2.2% higher.