Stocks felt pressure from reports showing the U.S. economy may be stronger than economists thought because the Fed may be less likely to cut.

Questions remain on whether the AI trade can continue powering U.S. equities given the risks tied to elevated market valuations.

Sell-side strategists, who have rushed to upgrade their stock targets ever since the market rebounded from its early-year slide, keep underestimating the rally’s strength.

Stocks felt pressure from reports showing the U.S. economy may be stronger than economists thought because the Fed may be less likely to cut.

Stocks got some help from a report showing that inflation in the U.S. accelerated to 2.7%, precisely what economists had projected.