Stocks Drop From All Time Highs – US Market Wrap

Stocks retreated after a rally to all-time highs spurred calls for a near-term pullback amid signs of buyer fatigue.

The S&P 500 briefly topped 5,500 before losing traction, while still remaining above a technical threshold that typically hints at an overstretched market. The high-flying tech group that has powered the bull run came under pressure, with the Nasdaq 100 down after a seven-day advance. NVIDIA and Apple led losses in megacaps. The Dow Jones Industrial Average outperformed.

After coming close to erasing this year’s losses, Treasuries fell despite data that mostly pointed to economic softening. A $21 billion TIPS auction was strong. Fed’s Kashkari said the central bank will return inflation to 2%, but estimated it will likely take a year or two to do so.

Traders believe the Bank of England will cut interest rates in August following dovish indications from policymakers. The Franc led losses among developed-world currencies after the Swiss National Bank cut borrowing rates. The yen fell for the sixth day in a row, heightening the likelihood that Japan will intervene to support the currency.

While the S&P 500 has set 31 new records this year, few of its members outside of technology have participated in the advance.