Last week, equity markets experienced a modest pullback, focused more in large cap and tech stocks, as concerns around potential artificial intelligence (AI) over valuations prompted profit-taking and sector rotation. Despite the cooling of AI-related hype, corporate earnings remain robust, as over 80% of S&P 500 companies beat earnings expectations and the is index on track for 12% Q3 earnings growth. Market volatility increased, with the VIX rising 25% and the S&P 500 testing its 50-day moving average for the first time since April. The labor market showed signs of cooling, highlighted by a sharp rise in job-cut announcements. Fixed income markets saw a steepening yield curve, driven by falling short-term yields amid softer economic data and increased expectations for Fed rate cuts. Alternative assets, including cryptocurrencies, also faced volatility, with Bitcoin dropping below $100,000 for the first time in months. Market breadth continued to deteriorate, reflecting weaker participation in the recent uptrend.