The S&P 500 finally broke its six-day streak of record closes as major U.S. stock indices slipped, reflecting investor caution amid a rush of corporate earnings and anticipation of the upcoming Federal Reserve meeting. After several sessions of gains driven by optimism in tech and AI sectors, the market took a breather, with the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all finishing in the red.

Earnings season was in full swing, with results from some of the market’s largest companies rolling in. Mixed performances and cautious outlooks contributed to market volatility, as traders assessed whether strong growth in select sectors can offset broader economic pressures and high stock valuations. While certain tech giants continued to deliver robust numbers, others signaled concerns about slowing demand or cost pressures, keeping investors on edge.

The looming Federal Reserve decision added to the uncertain sentiment. Markets widely expect the Fed to hold interest rates steady at its upcoming meeting, but investors are eager for clues about the timing and size of any potential rate cuts this year. Recent economic data has painted a mixed picture, with inflation showing signs of cooling but stubbornly above the central bank’s long-term target, keeping monetary policymakers watchful.

Despite the pullback, the S&P 500 remains near all-time highs, up significantly compared to last year. The recent rally has been notable for its narrow leadership, raising questions about the durability of the advance if only a handful of companies are driving gains.

As markets digest earnings reports and await the Fed’s decision, investors remain focused on signals about the economy’s direction and potential policy shifts that could shape the next leg of the market’s performance. For now, some caution is entering the picture after weeks of exuberance.