Stocks retreated for the third consecutive week, as sentiment has turned negative due to a sharp increase in long-term bond yields and fears of a severe slowdown in China.

Stocks were mixed last week in light end-of-summer trading. Investors were wrangling with positive news on the inflation front, while long-term rates continue to move higher.

U.S. stocks ended the week higher, with the Dow posting its 13th consecutive gain on Wednesday, its longest winning streak since 1987.

Markets advanced last week on hopes that the strong labor market, coupled with moderating inflation, will set the stage for a soft landing recovery that avoids recession.

Stocks were on the rise last week as investors welcomed more data showing inflation cooling. Equity markets are retesting highs not last hit since early 2022.

Coming into the year, the market was bracing for an economic recession as the Fed continued its aggressive tightening policy to thwart stubborn inflation.

The second quarter of the year is in the bag, and it has turned out much different than investors and market pundits thought going into the year.

The major US equity indexes traded lower in a shortened by Juneteenth holiday week. The NASDAQ Composite suffered its first weekly decline in two months, while the S&P 500 Index dropped for the first week in six weeks. Growth stocks outpaced value shares, and large caps outperformed small-cap peers.

Despite a multitude of headwinds, the bull market rally marches on. The S&P 500 Index tallied its longest stretch of daily gains since November 2021, posting its best weekly performance since the end of March. Market breadth narrowed a bit last week, with a renewed focus on large-cap growth stocks.

Last week, the S&P 500 officially entered a bull market, up more than 20% off its mid-October lows. What is even more notable is that market breadth is also improving. Small caps outpaced large caps, and value shares outperformed growth names last week.