The Nasdaq briefly topped 4,000 early Monday for the first time since September 2000, while the Dow and S&P 500 hit all-time highs once again.
Though it crossed a big milestone, the tech-heavy Nasdaq is still well below its peak of above 5,000, which was set in March 2000.
But the enthusiasm was short-lived. Stocks pulled back following a disappointing report on the housing market. Pending home sales dropped 0.6% in October from the prior month. That was the fifth straight decline. Economists expected a 1.3% increase. The housing recovery has been a big boon for the stock market this year, so signs of weakness are worrisome.
Earlier, investors seemed encouraged by a landmark deal reached between Iran and the United States, the United Kingdom, France, Russia, China and Germany over the weekend.
As part of the agreement, world powers will relax economic sanctions against Iran in exchange for a promise that the country scales back its nuclear program. Oil prices sank on the expectation of more oil exports from Iran following the nuclear deal.
World markets also climbed on the news. European markets were higher in afternoon trading, with Germany’s benchmark Dax index leading the way. Most Asian markets ended higher, with Japan’s Nikkei jumping 1.5% as the yen weakened against the dollar.
Besides the Iran deal and pending home sales, there wasn’t much other news moving markets. Trading volume is expected to be low during this holiday-shortened week and there are few economic and earnings reports on tap.
U.S. markets will be closed Thursday for Thanksgiving and will shut at 1 p.m. ET on Friday.
In company news, Wal-Mart announced that current CEO of Wal-mart International Doug McMillon will replace CEO Mike Duke, who plans to retire early next year.
Apple bought the Israeli company PrimeSense. Apple’s stock was up about 1% in early trading.
