By Caroline Valetkevitch

NEW YORK, (Reuters) – U.S. stock ended a choppy session on Monday due to nervous investors ahead of the third quarter earnings reporting season.

Supply chain problems and higher costs for energy and other things have fueled concern about earnings, set to kick off with JPMorgan Chase & Co (NYSE:) results on Wednesday.

After midday, indexes lost some of their early gains and reversed them just before closing. JPMorgan shares fell 2.1%, which was also the largest drag on the market. This is in addition to Amazon.com (NASDAQ): that dropped 1.3%. The S&P financial index was down 1%, while communication services dropped 1.5%.

Tim Ghriskey (chief investment strategist, Inverness Counsel) said that the market was cautious as it heads into earnings season. “Supply chain problems may have had an impact on earnings for certain companies and industries more than others.”

For Corporate America, another strong period of profit growth in the U.S. is expected. However, investors who are concerned about supply disruptions or inflation pressures affecting bottom lines will be watching earnings closely.

This could cause Wall Street volatility to increase following September’s bruising. Analysts expect a 29.6% year-over-year increase in profit for S&P 500 companies in the third quarter, according to IBES data from Refinitiv as of Friday.

The fell 250.19 points, or 0.72%, to 34,496.06, the S&P 500 lost 30.15 points, or 0.69%, to 4,361.19 and the dropped 93.34 points, or 0.64%, to 14,486.20.

Also, the oil and gas sector finished lower than it did earlier today. It had reached its highest level since January 2020. A higher oil price has fueled concerns over rising prices for consumers and businesses.

S&P 500 vs Energy https://fingfx.thomsonreuters.com/gfx/mkt/gdpzywylqvw/MicrosoftTeams-image%20(19).png

Analysts do expect some positive earnings news. Christopher Harvey, chief of equity strategy, said that a bigger company can mitigate many of these problems. Wells Fargo Securities in New York (NYSE:).

Managers have been “very cognizant of their finances and not sacrificing margins.” He also said that demand is strong.

Visa Inc (NYSE:). was down 2.2% and Mastercard Inc (NYSE:) also fell 2.2% among the biggest drags on the S&P 500.

The volume traded on U.S. stock exchanges reached 8.15 billion shares, which is compared to the average of 10.9 billion for the entire session in the past 20 trading days.

The U.S. Federal Holiday Monday caused trading to be slower, as U.S. bonds markets were closed for the day.

Southwest Airlines (NYSE) Co, which fell 4.2% due to a report it canceled at minimum 30% of Sunday’s scheduled flights, was one of the most popular stocks.