New Delhi, Dec. 29 -- Wall Street's Holiday Highs Meet Post-Record Chill.

Wall Street's euphoric year-end rally encountered its first real test on Sunday evening as S&P 500 futures slipped sharply, signaling a potential pause in the benchmark index's relentless climb to record highs. The downturn came just hours after the major indexes closed out a holiday-shortened week on Friday with fresh peaks, fueled by thin trading volumes and lingering optimism over President Trump's pro-business agenda. Traders now grapple with the sobering reality that even the mightiest bull markets must eventually contend with profit-taking and positioning for the new year.

The S&P 500, which notched its latest all-time high on Friday amid the so-called Santa...