U.S. stocks pulled back Tuesday, reflecting a pause after an extended rally. The S&P 500 fell 0.3%. The tech-heavy Nasdaq Composite fell 0.4%. The Dow Jones Industrial Average rose 0.2%, or 71 points.
Tuesday’s declines bucked a recent trend of stock market gains. The S&P 500 has risen for five consecutive months, including a 3.1% gain in July. Investors have grown more optimistic that the Federal Reserve will be able to engineer a so-called soft landing, by bringing inflation to heel while avoiding a significant economic contraction.
The rally began with shares of big technology companies, but has recently expanded to other parts of the market such as industrial and financial stocks. All 11 sectors of the S&P 500 rose in July.
Read the full story on The Wall Street Journal here.