Your Capital Markets Snapshot: Equity Markets Experienced Notable Pullback

Last week, the equity markets experienced a notable pullback after a strong post-election rally. Major indices like the S&P 500, Nasdaq, and Russell 2000 all posted significant losses, with the Russell 2000 down over 4%. This decline was driven by rising bond yields, which reached multi-month highs, and comments from Fed Chair Jerome Powell suggesting a more cautious approach to rate cuts. Additionally, there was a noticeable sector rotation as investors moved out of Information Technology and into more cyclical sectors like Financials, Industrials, and Energy. Despite the pullback, the overall market remains up for the year, supported by strong economic fundamentals and resilient consumer spending.