US stocks pulled back from their all-time highs Monday as some of the steam came out of Wall Street's long, record-breaking rally.
- The S&P 500 fell 10.69 points, or 0.2% to 5,853.98. Monday, coming off its sixth straight winning week, its longest such streak of the year.
- The Dow Jones Industrial Average dropped 344.31 points, or 0.8% to 42,931.60, falling back from its record set on Friday.
- The Nasdaq composite rose 50.45 points, or 0.3%, to 18,540.00,
Crude oil prices rose to regain some of last week's sharp losses, while US Treasury yields climbed in the bond market.
The rise in yields helped knock down stocks that tend to get hurt by higher interest rates, such as big dividend payers and businesses in the housing industry, the AP reports. Real-estate owners fell to the sharpest loss among the 11 sectors that make up the S&P 500 index, while homebuilders Lennar and DR Horton both fell at least 4%. Home Depot's 2.1% drop was one of the heaviest weights on the S&P 500. The declines mean at least a pause in Wall Street's rally to records, which was built in large part on optimism that the US economy can make a perfect escape from the worst inflation in generations. With the Federal Reserve now cutting interest rates to keep the economy humming, the expectation among optimists is that stocks can rise even further.
But critics are warning that stock prices look too expensive given how much faster they've climbed than corporate profits. That puts pressure on companies to deliver growth in profits to justify their stock prices, and more than 100 companies in the S&P 500 are on deck to give details this week about their performances during the summer. That includes such heavyweights as AT&T, Coca-Cola, IBM, and General Motors. Tesla fell 0.8% ahead of its report. Its stock has been shaky recently, including a tumble after an update on its highly anticipated Robotaxi included fewer details than investors were hoping for.
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Boeing will report its latest results on Wednesday. It rose 3.1% after reaching an agreement with the union representing its striking machinists on a contract proposal. The union's members could vote Wednesday on the deal, which could end a costly walkout that has crippled production of airplanes for more than a month. Spirit Airlines soared 53.1% after the carrier was able to extend a credit-card processing agreement. Coming into the day, the airline's stock had lost 91% in the year so far following the cancellation of its planned merger with JetBlue. Trump Media & Technology Group rose 5.8% to top $30, continuing its strong run since it briefly dipped below $12 last month.
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