Until now, the S&P 500's rally since early April was built on the potential for sellers to be caught off guard by surprising trade deals. Since the benchmark index has rallied 21% after Trump paused reciprocal tariffs on April 9,

The S&P 500 posted a 0.27% decline on Wednesday as investors weighed Trump’s scant-on-details trade deal with China as well as an inflation report that outperformed analysts’ expectations. The stock markets dropped on Wednesday despite a seemingly positive development in the trade war between the U.