#MarketPullback

Market Pullback: Understanding the Recent Trends

The stock market has experienced a pullback from its latest all-time highs, with the S&P 500 falling 0.6% after climbing to a record high. The benchmark index ended August with a 1.9% gain, its fourth straight month of gains. This trend is attributed to various factors, including inflation concerns and shifts in interest rates ¹.

Key Factors Contributing to Market Pullback

- *Inflation Concerns*: Prices rose 2.6% in July compared to the previous year, with the core personal consumption expenditures price index (PCE) increasing 2.9% year-over-year, up from 2.8% in June.

- *Interest Rate Expectations*: Traders expect a roughly 87% chance of a quarter-point rate cut by the Federal Reserve next month, amid signs of sluggishness in the job market.

- *Technology Sector Decline*: Tech giants like Nvidia, Broadcom, and Oracle saw significant declines, weighing on the market ¹ ².