Stocks climbed 2% last week, marking another round of record highs as the bull market turned three years old. While strong earnings from the Magnificent 7 and solid sector performance fuel optimism, stretched valuations and overextended momentum suggest a potential pause ahead.

Stocks bounced back 2% last week, but rising volatility and renewed interest in Treasuries hint that markets may be due for a pause. Gold surged to record highs, Bitcoin corrected sharply, and oil extended its slide — all while the S&P 500 tests key technical support and resistance levels.

Stocks ended the week fractionally lower as the S&P 500 briefly topped 6,500 before pulling back. Gold reached new records, small caps surged, and AI optimism faced headwinds, while traders prepare for seasonal volatility.