The S&P 500 has entered correction territory, falling over 10% from its recent peak amid investor caution due to Fed's attempts to manage stagflation risks. European equities outperformed U.S. stocks, while transport-related sectors were hit hard by tariff uncertainties. In fixed income, the Fed maintained a measured policy stance, leading to falling yields and mixed credit performance. Commodities saw modest changes with crude prices below $70 per barrel and gold gaining significantly, while the economic overview showed mixed retail sales and resilient labor market.

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