**Wall Street's Rally Takes a Pause as Stocks Dip from Record Highs**

Wall Street’s relentless rally faced a breather on Monday, with U.S. stocks pulling back slightly from recent highs. The S&P 500 dipped 0.2% in afternoon trading after securing its sixth straight winning week, marking its longest streak of the year. The Dow Jones Industrial Average tumbled by 326 points, or 0.8%, from its record peak set last Friday, while the Nasdaq composite managed a modest rise of 0.1%.

Markets showed a mixed performance globally. Crude oil prices climbed, recovering from last week's sharp downturn. U.S. Treasury yields increased, reflecting rising interest rates, while European stock indexes mostly fell after mixed results in Asia. The surge in yields particularly affected sectors vulnerable to higher interest rates, such as real estate and homebuilding. Real-estate stocks suffered the steepest declines among the 11 sectors of the S&P 500, with notable homebuilders Lennar and D.R. Horton falling more than 3%.

Despite recent setbacks, stocks remain near record levels, driven by optimism about the U.S. economy's ability to navigate severe inflation without descending into recession. The Federal Reserve’s interest rate cuts have buoyed this sentiment. However, some critics argue that stock prices are overinflated compared to corporate profit growth, creating high expectations for upcoming earnings reports. Over 100 companies in the S&P 500, including giants like AT&T, Coca-Cola, IBM, General Motors, and Tesla, are expected to release their summer performance details this week.

Tesla’s stock experienced a 1.4% drop ahead of its report, continuing its recent volatility. The company saw a decline following an underwhelming update on its robotaxi project. Boeing, set to report results on Wednesday, saw its stock rise by 3.2% after reaching a deal with its striking machinists' union, potentially ending a detrimental production halt.

A standout performer was Spirit Airlines, which soared by 52.2% after extending a credit-card processing agreement. The airline had previously lost 91% of its value this year following a canceled merger with JetBlue. Meanwhile, Trump Media & Technology Group climbed 4%, continuing its upward trajectory, driven more by former President Donald Trump’s electoral prospects than its financials.

In the bond market, the yield on the 10-year Treasury rose to 4.17% from 4.08% late Friday. This week is relatively light on major economic reports, with a preliminary update on U.S. business activity expected Thursday. The Bank of Canada will reveal its latest interest rate decision, possibly reducing rates by half a percentage point on Wednesday.

Internationally, market reactions were mixed in China following the central bank's rate cuts aimed at easing borrower pressure, particularly for struggling property developers. Shanghai’s stocks edged up by 0.2%, while Hong Kong saw a decline of 1.6%. Chinese markets have recently been subject to erratic swings due to the nation's economic slowdown and speculation on potential government stimulus measures.