Tesla led the Nasdaq Composite lower Monday and the broader markets fell after a report showed the service sector continued to grow last month, suggesting inflation remains stubbornly high.

The Dow Jones Industrial Average fell 482.78 points, or 1.40%, to close at 33,947.10. The S&P 500 fell 72.87 points, or 1.79%, to close at 3.998.83, and the Nasdaq fell 221.56 points, or 1.93%, to close at 11,239.94.

The Institute for Supply Management on Monday reported the service sector industry continued to expand in November, highlighting a still-strong economy and fueling concerns that the Federal Reserve will continue to raise interest rates to stifle inflation.

The Federal Reserve policy committee meeting to decide interest rates is scheduled for next week. Fed Chairman Jerome Powell indicated the central bank is likely to raise interest rates 0.5% after hiking them 0.75% at each of its last four meetings.

A government report on Friday showed stronger-than-expected non-farm job and wage growth, adding to concerns that the Federal Reserve's aggressive interest rate increases will ultimately lead the economy into recession.

Meanwhile, Tesla helped weigh down the Nasdaq after it announced plans to cut December production of the Model Y at its Shanghai plant by more than 20%. Tesla's (TSLA) shares fell $12.41, or 6.37%, to close at $182.45.

Some stocks that saw declines Thursday included Apple (AAPL), which closed at $146.63, down $1.18, or 0.80%. Alphabet's (GOOG) price of shares fell $0.96, or 0.95%, to close at $99.87.

"The labor market looks fine and so it's almost just this kind of bizarre world where good news is bad news," Jonathan Waite, fund manager at Frost Investment Advisors, told Reuters.