S&P 500 Retreats As AI Speculation Deflates With Arrival Of Lower Cost Competition

The S&P 500 retreated 1.5% from its previous week's close to end the week at 7,457.69.

The CME Group's FedWatch Tool now only sees one rate hike in its forecast range as having a greater than 50% probability of happening: a quarter-point rate hike coming when the Fed meets on 16 September (2026-Q3).

The Atlanta Fed's GDPNow tool's estimate of real GDP growth for the U.S. economy in the current quarter of 2026-Q2 rebounded to +1.7% from the previous week's real growth estimate of +1.2%.

The S&P 500 ( SPX ) retreated 1.5% from its previous week's close to end the week at 7,457.69.

Much of the market's downward movement came in response to a growing awareness among investors of