Stocks experienced a slight decline on Monday, with the Dow Jones falling by 0.3%, the S&P 500 dipping by 0.1%, and the Nasdaq also down by 0.1%.
Intel shares dropped 3% due to reports of China blocking Intel chips in government servers and computers. United Airlines stock fell 6% after increased scrutiny from the FAA following safety incidents.
Despite the day's losses, the market is on track for its fifth consecutive month of gains, with major US stock benchmarks reaching new all-time highs last week.
The rally has been driven by the Federal Reserve's rate-cutting plans and enthusiasm for tech stocks, particularly those involved in AI.
However, some investors are concerned about the potential impact of an overextended rally and higher-for-longer interest rates. The S&P 500 is currently trading at a 33% premium to its average price-to-earnings ratio over the last 20 years.
Investors are awaiting the February personal consumption expenditures price index (PCE) data, set to be released on Friday, for further insights into inflation. The market's reaction to this data will be seen the following Monday due to the Good Friday holiday.
Overall, investor sentiment remains above its historical average, indicating continued market optimism.