Wall Street Takes a Step Back from Record Highs as Market Braces for Potential Pullback
NEW YORK (AP) — Wall Street took a slight dip on Monday, stepping back from its recent record highs to kick off a shortened trading week. The S&P 500 slipped 0.3%, the Dow Jones Industrial Average fell 0.4%, and the Nasdaq composite dropped 0.3% in a quiet day of trading.
Last week, the market saw its best performance of the year, with all three indexes reaching new records on Thursday. The Federal Reserve’s indication of potential interest rate cuts this year helped boost stocks, but investors are now cautious as they await more earnings reports to justify high prices.
United Airlines weighed on the market, losing 3.4% as federal regulators increased oversight following recent safety issues. Meanwhile, Boeing saw a slight rise after announcing a management shakeup in response to safety concerns.
In other news, the company behind former President Donald Trump’s Truth Social platform completed its merger, with the stock set to begin trading under the ticker symbol “DJT” on Tuesday. This week, financial markets will be watching for Friday’s report on U.S. consumer spending and inflation data.
Despite recent reports of higher-than-expected inflation, the Federal Reserve remains optimistic about a cooling trend in the long term. Traders are anticipating rate cuts starting in June to help ease inflation pressures.
Overall, the market remains resilient, but experts warn that a notable pullback could be on the horizon if companies fail to deliver strong earnings growth. Investors will be keeping a close eye on economic data and corporate performance in the coming weeks.
