The S&P 500 declined about 1.9% over the past week as uncertainty around potential December Federal Reserve rate cuts pressured risk sentiment. Despite the pullback, the index remains more than 12% higher for the year, while the Nasdaq Composite has gained over 15% in 2025 so far. Analysts note that shifting expectations around Fed policy, elevated bond yields and cautious positioning from institutional investors contributed to the weakness. Market watchers expect volatility to remain elevated until clearer policy signals emerge.