"The S&P 500 recorded another mild pullback yesterday, continuing its corrective phase as the index approached its historical peak following a strong recovery that had lasted nearly two weeks prior. This is not a sign of weakening trend momentum, but rather reflects natural profit-taking behaviour after the market advanced rapidly in a short period of time, especially in sectors that had led the rally such as technology, consumer discretionary, and semiconductors."
"As prices move into sensitive territory, investors often tend to reduce risk exposure, particularly with the Fed's interest rate decision drawing near. The corrective pressure in the early sessions of the week did not concentrate on the technology sector as usual, but leaned more toward financials, healthcare, and several individual stocks. In the banking group, JPMorgan fell about 4.7% after management warned that operating expenses in 2026 could rise significantly to around USD 105 billion."
"Healthcare was also among the most noticeably weaker sectors and became a notable drag on the S&P 500. The technology sector saw mild divergence, with the Philadelphia Semiconductor Index trading mostly sideways, reflecting investors' temporary pause toward AI-related names and high-growth stocks while awaiting clearer signals from the Fed. Despite the broad-based pullback, the overall market picture remains relatively stable. Selling has been selective rather than aggressive, indicating that investors are not abandoning the market but are instead reallocating their portfolios."
The S&P 500 experienced a mild pullback as the index approached its historical peak after a nearly two-week recovery. The decline reflected profit-taking rather than weakening trend momentum, concentrated in sectors that led recent gains such as technology, consumer discretionary, and semiconductors. Investors reduced risk ahead of the Fed's interest rate decision, shifting pressure toward financials, healthcare, and individual stocks; JPMorgan fell after warning of higher 2026 operating expenses. Semiconductors traded mostly sideways while AI-related and high-growth names paused. Selling remained selective, ETFs like SPY showed no notable outflows, and capital rotated toward defensive and value sectors, keeping overall market stability.
Read at London Business News | Londonlovesbusiness.com
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