But terror fears are wearing off, and optimism that the economy will recover from a June swoon is increasing. Earlier today, the Institute for Supply Management's factory index rose, while the Construction Spending index eased. Evidence of a strengthening economy prompts speculation that the Federal Reserve will raise its key interest rate again.
Some of pullback was options-related. One player bought 10,000 puts on 10-year futures. Traders are preparing for personal income and spending data Tuesday.