Stronger Data Spurs Market Pullback

U.S. stocks fell Thursday, extending a multi-day pullback from record highs as the S&P 500, Nasdaq and Dow slipped and futures traded lower into the open. Fresh economic data — initial jobless claims of 218,000, a revised Q2 GDP growth of 3.8%, and stronger-than-expected durable-goods and trade figures — pushed Treasury yields higher and led investors to reassess the odds and timing of Federal Reserve rate cuts. Fed commentary was mixed, with some officials (including San Francisco Fed President Mary Daly) signaling more cuts may be needed while other remarks remained cautious, and markets were braced for Friday’s PCE inflation report for clearer guidance. The AI-fueled tech rally showed fatigue, with large-cap tech names under pressure and individual volatility at stocks such as Micron and Intel. Corporate news (Starbucks cutting roughly 900 corporate jobs and closing unprofitable stores, a CarMax earnings miss) and commodity/sector moves (notable swings at Freeport-McMoRan and Lithium Americas, and volatile oil) amplified the rotation, and global markets from Asia tracked the caution into month/quarter-end positioning.