"This is just a hiccup for stocks," said Donald Selkin, chief market strategist at National Securities. "The market has been vulnerable to some kind of setback after the kind of run that it's had, so it just needs let some air out before resuming the rally."
Just last Thursday, the Dow sealed a 10-day winning streak, its longest in nearly two decades. The index also set new record highs for eight straight days. Meanwhile, the S&P 500 remains just 0.6% below its all-time closing high set in October 2007.
By the end of last week's run, the market appeared to be in a "tired rally," said Fred Dickson, chief market strategist at D.A. Davidson & Co., noting that volume had been unusually low for a market advancing to record levels.