S&P 500 Drops 2% in First Major Dip in Five Months

The S&P 500 experienced its first significant dip in months, dropping 2%, a move that has prompted discussions among investors and analysts about the potential change in market dynamics. This dip, the largest in five months, comes after a period of notable growth, with the index having risen 28% in the preceding five months. The decline coincided with bond yields and oil prices reaching the higher end of their recent ranges, alongside a mixed message from the Federal Reserve. The market's reaction has led to a renewed interest in hedging strategies among traders, who had been complacent due to the prolonged bull market. Despite the downturn, some commentators suggest the bull market is not over, viewing the dip as a minor setback rather than a fundamental shift.