#MarketPullback

The recent market pullback, triggered by uncertainty around administration policies and Federal Reserve actions, has pressured U.S. equity markets. The S&P 500 dropped 4.05% year-to-date, reflecting trade war concerns and tariff impacts. Despite this, a robust labor market, with 177,000 jobs added in April, and strong Q1 earnings (76% of S&P 500 companies beating estimates) fueled a nine-day recovery rally, erasing losses from Trump’s “Liberation Day” tariffs. Tech stocks led gains, though weaker guidance for Q2 suggests caution. Investors eye trade talks and Fed decisions, with markets pricing in three rate cuts for 2025.