The US stock market retreated from its all-time highs on Monday, as Wall Street's recent record-breaking rally lost some momentum. The S&P 500 dipped by 0.2%, ending a six-week winning streak, the longest of the year. Meanwhile, the Dow Jones Industrial Average dropped 344 points, or 0.8%, after setting a new record on Friday. In contrast, the Nasdaq composite gained 0.3%.

Markets worldwide showed mixed results, with European stock indices mostly declining, while oil prices rebounded after last week's sharp losses. US Treasury yields also climbed, contributing to the downward pressure on stocks sensitive to interest rates, such as real estate and housing companies. Real estate stocks led the losses in the S&P 500, with homebuilders Lennar and D.R. Horton both falling more than 4%, and Home Depot dropping by 2.1%.

This decline signals a pause in Wall Street's rally, driven by optimism that the US economy may avoid a recession and recover from inflation without severe consequences. The Federal Reserve's interest rate cuts have helped sustain this optimism. However, critics argue that stock prices are overvalued compared to corporate earnings growth.

This week, more than 100 companies from the S&P 500, including major players like AT&T, Coca-Cola, IBM, General Motors, and Tesla, are set to report their earnings. Tesla's stock dipped 0.8% ahead of its earnings release, following recent volatility due to fewer-than-expected details about its anticipated robotaxi service.

Lufkin Daily News