Markets Pull Back from Recent Highs But Economic Fundamentals Remain Strong

Markets have pulled back recently, with the S&P 500 down over 10% from its peak in August.

Higher interest rates have caused stock valuations to drop, explaining part of the market decline.

Economic growth remains strong, with GDP up 5% last quarter and spending increasing.

Earnings growth is still expected to be robust over the next several quarters.

While painful, market pullbacks of around 10% are historically normal occurrences, happening about once a year.