The S&P 500, currently on a six-month rally, posted a positive yet volatile week following the prior Friday’s selloff. The US equity benchmark may be showing signs of short-term fatigue with headwinds arising from ongoing U.S.-China trade tensions, the U.S. government shutdown, and emerging concerns about small regional banks’ credit quality. Volatility recently increased, as indicated by the recent spike in the VIX index and a shift toward safe-haven assets, like U.S. Treasuries. Despite these challenges, any market pullback we may experience is not expected to become a deep/prolonged bear market, given supportive factors such as anticipated Federal Reserve rate cuts, strong, positive corporate earnings, and accommodative fiscal policies. Despite the increased volatility of recent weeks, the S&P 500 held above its 50-day moving average, and major U.S. banks kicked off earnings season with strong results, which are potentially bullish signals. Treasury yields fell midweek, with the 2- and 10-year rates breaking below key resistance levels, but rebounded before week’s end, reflecting ongoing uncertainty. Oil prices dropped to their lowest levels since May, while gold surged to a new high and Bitcoin experienced a sharp sell-off.