S&P500 pullback as inflation risks remain tilted to the upsideUS 500 (per 1.0)TRADENATION:US500TradeNationThe S&P 500 fell 0.35%, snapping a four-day winning streak, as hawkish ECB commentary from Isabel Schnabel pushed global yields higher and weighed on risk appetite. Schnabel signalled comfort with expectations for another rate hike, warned that inflation risks remain tilted to the upside, and suggested the neutral rate may be rising due to AI and public investment. In response, euro overnight index swaps for Dec-2026 rose 8bps, contributing to the broader risk-off tone. Equity losses in the US were broad-based, with 10 of 11 sectors lower, led by communication services (-1.77%) and materials (-1.66%). The Magnificent 7 fell 0.91% for its worst session in over two weeks, although semiconductors outperformed, helped by Nvidia (+1.72%). Despite the decline, the index remains less than 1% below its late-October record high, but momentum clearly cooled as yields climbed. In after-hours trade, Nvidia gained a further ~2% after Donald Trump approved sales of its H200 AI chip to China, subject to a 25% government surcharge and sales only to “approved customers”—a potentially significant earnings tailwind if Chinese buyers are ultimately permitted to proceed. This communication is for informational purposes only and should not be viewed as any form of recommendation as to a particular course of action or as investment advice. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or as an official confirmation of any transaction. Opinions, estimates and assumptions expressed herein are made as of the date of this communication and are subject to change without notice. This communication has been prepared based upon information, including market prices, data and other information, believed to be reliable; however, Trade Nation does not warrant its completeness or accuracy. All market prices and market data contained in or attached to this communication are indicative and subject to change without notice.