Stocks pulled back on Wall Street on Monday as markets around the world paused following record-setting runs.
The S&P 500 fell 0.7 percent, breaking a four-day winning streak. Tesla, Amazon, Apple and other big gainers over the past year led the way lower, even as financial, health care and energy stocks notched gains. Treasury yields continued to rise.
Analysts said a pullback was no surprise following the big rally recently for everything from stocks to bond yields to commodities amid a wave of optimism. With Democrats set to take control of Washington, investors expect Congress to try soon to deliver more stimulus to the economy through larger cash payments for Americans and other programs. That’s building on top of enthusiasm already built about a powerful economic recovery coming later this year as COVID-19 vaccines roll out.
The market managed to look past much of last week’s bad news, including Wednesday’s attack on the U.S. Capitol, surging virus cases and a disappointing employment report, said Julian Emanuel, BTIG chief equity and derivatives strategist. That both speaks to the market’s resiliency and could signal a change in attitudes.
The S&P 500 dropped 25.07 points to 3,799.61. The Dow Jones Industrial Average fell 89.28 points, or 0.3 percent, to 31,008.69. The Nasdaq composite slid 165.54 points, or 1.3 percent, to 13,036.43. The three indexes set all-time highs Friday.