Stock investors have pulled back after a surge following the election, as Federal Reserve Chair Jerome Powell's cautious stance on interest-rate cuts has dampened enthusiasm for the Trump trade.

Powell's reluctance to ease monetary policy has led to rising bond yields, which in turn have put pressure on stock prices. The S&P 500 has declined by 2% over the past week, erasing half of its gains since the election. This decline, along with losses in corporate credit and commodities, represents a significant retreat across multiple asset classes. One measure suggests that it was the worst week in 13 months.

Investors are reevaluating their strategies in light of the Fed's current approach and the broader economic landscape.