Stocks Edge Lower After S&P 500 Hits Record

Reopening stocks led the market lower Monday, with cruise liners, manufacturers and brick-and-mortar-retailers all notching losses. Investors, meanwhile, continued to rotate back into the growth trade, pushing the Nasdaq up a sixth session out of the last seven.

The renewed interest in tech and other growth stocks had coincided with a pullback in bond yields last week. At the same time, some meme stocks also rallied, led by a 17% jump in shares of

AMC Entertainment Holdings.

AMC 21.51%

Crypto assets got a boost after Tesla Chief Executive reopened the possibility of the electric car maker accepting bitcoin for purchases.

Moves across the stock market were relatively muted as investors shifted their attention toward the Fed’s two-day policy meeting. Although most investors expect the bank to keep interest rates near zero, several say they are hoping to get more insight into whether inflation will force the central bank to raise rates sooner.

“The Fed’s messaging this year will be critical,” Glenmede strategists said in a note. “The Fed needs to convey its intention to wind down ultra-accommodative policy, but at the same time, convey that it has no intention of abruptly tightening policy, a fine line that could easily be miscommunicated.“

On Monday, tech and communication stocks gained 0.3% and 0.2%, respectively. Tesla shares added 1%, Apple rose 1.8% and Netflix gained 2.5%.

AMC, meanwhile, continued to rally, proving the meme-stock sensation is far from over. Shares of the movie-chain operator gained 17%, extending its gain so far this month to 122%.

Bitcoin prices also rallied after Mr. Musk’s comment, sending the cryptocurrency above $40,000 for the first time in two weeks.

All that was offset by losses across most of the rest of the stock market. Financial stocks, which are sensitive to rates, fell 1%. Shares of material firms shed 1.3% while manufacturers and consumer staples slid 0.7% and 0.6%, respectively.

Norwegian Cruise Line Holdings

fell 2.7%, while

Ford Motor,

one of the best performers of the S&P 500 this year, retreated 2.4%. Other decliners included

Walgreens Boots Alliance,

Deere

& Co. and

Caterpillar,

all off 2% or more.

“Stock markets are by and large around all-time highs. We think there is still more upside there,” Salman Baig, multiasset investment manager at Unigestion. “We’re seeing clear signs that the recovery is sustainable.”

In bond markets, the yield on the benchmark 10-year Treasury note ticked up to 1.496% from Friday’s 1.462% level. The yield, which moves inversely to price, had dropped for four consecutive weeks, in part because foreign investors and pension funds are boosting their holdings of U.S. government bonds.

Overseas, the pan-continental Stoxx Europe 600 ticked up 0.2%, on pace for a new record. Japan’s Nikkei 225 rose 0.7% by the close of trading, and South Korea’s Kospi Index added 0.1%.

Write to Anna Hirtenstein at anna.hirtenstein@wsj.com and Michael Wursthorn at Michael.Wursthorn@wsj.com