#MarketPullback

The current market pullback appears to be influenced by various factors, including economic indicators, trade policies and corporate earnings reports. Let's break it down ¹ ²:

- *Recent Market Trends*: The S&P 500 index has seen a decline of about 0.80% to 5644.00, while the Nasdaq has dropped around 0.99% to 19912.80. These movements come after an eight-day winning streak, suggesting a potential pause in the market's upward momentum.

- *Earnings Reports*: Apple's and Amazon's earnings releases have contributed to market volatility. Amazon's stock fell about 5% after its earnings report, despite beating top and bottom line expectations. Apple's stock also dipped, with some analysts citing concerns over guidance and sales in China.

- *Trade Policies and Tariffs*: Ongoing uncertainty surrounding trade policies and tariffs continues to impact market sentiment. Analysts warn that elevated tariffs could lead to a mild recession, and some sectors, like automobiles and IT services, might be disproportionately affected.

- *Economic Indicators*: The US economy's GDP growth turned negative in Q1, partly due to a surge in imports. However, consumption remains relatively healthy, and business investment has been robust. The labor market also shows resilience, with the unemployment rate steady at 4.2%.

*Key Factors to Watch*:

- *Jobs Report*: The April jobs report showed 177,000 jobs added, above expectations. This might influence the Federal Reserve's decision on interest rates.

- *Interest Rates*: The Fed's interest rate decisions will likely impact market sentiment. Currently, markets are pricing in three Fed interest rate cuts instead of four.

- *Global Economic Trends*: The global economy's performance, particularly in major markets like China and Europe, could impact trade policies and overall market sentiment.

Given the current market conditions, it's essential to stay informed about economic indicators, trade policies and corporate earnings reports .