Stocks finished lower on Monday as market participants weighed weaker-than-expected economic data ahead of the Federal Reserve's policy meeting next week. The Dow Jones Industrial Average dropped about 200 points, while the S&P 500 and Nasdaq Composite lost about 0.2% and 0.1%, respectively.

Here's how the market settled on Monday:

S&P 500 Index (SPY  ): -0.20% or -8.58 points to 4,273.79

Dow Jones Industrial Average (DIA  ): -0.59% or -199.90 points to 33,562.86

Nasdaq Composite Index (QQQ  ): -0.09% or -11.34 points to 13,229.43

The S&P 500 looked set to enter into a bull market on Monday, but erased some of its earlier gains as traders looked ahead towards another possible interest rate hike. Data from the U.S. Census Bureau showed that new orders for U.S. manufactured goods rose 0.4% in April month-to-month, representing a slowdown from March's downwardly revised 0.6% gain.

Investors are closely watching all new economic releases ahead of the central bank's June 13-14 meeting for clues on the Fed's next moves for interest rates. Analysts believe there is a nearly 80% chance the Fed will hold interest rates are their current level, according to CME's FedWatch.

Wall Street rallied last week as Friday's jobs report for May signaled that the economy may not be entering a recession in the near-term, pushing some slowdown forecasts to 2024. The passage of the U.S. debt ceiling bill and its signing on Saturday by President Joe Biden also boosted market sentiment over the weekend.

Also in the spotlight on Monday, Apple (AAPL  ) shares reached all-time highs earlier in the session after the tech company unveiled its highly anticipated virtual reality headset alongside other software updates at its annual Worldwide Developers Conference.

Apple was not alone on the higher shares moves on Monday, with Unity (U  ) popping as much as 26% after Apple said it was collaborating with the software company on its Apple Vision Pro headset to create apps for the device. Intel (INTC  ) shares, on the other hand, fell after Apple announced its upcoming Mac Pro will increase a new chip made in-house by the tech company.

Elsewhere, Palo Alto Networks (PANW  ) shares rose Monday after the S&P Dow Jones Indices announced late Friday that the cybersecurity stock will replace Dish Network (DISH  ) in the S&P 500, effective June 20.

Spotify (SPOT  ) announced Monday it is laying off 200 employees within its podcast division, representing about 2% of its workforce, as the audio streaming platform shakes up how it manages partnerships with some top podcasts.

"This fundamental pivot from a more uniform proposition will allow us to support the creator community more," Spotify VP Sahar Elhabashi wroe in a memo to employees.

Looking ahead, investors are trading cautiously ahead of next week's Consumer Price Index reading for May that will be the last economic news central bank policy makers see before issuing their next decision on June 14.