The S&P 500 nudged higher last week, hitting new highs on Wednesday as traders started to lean into growing hopes that the Federal Reserve might cut rates soon. But by Friday, markets pulled back modestly, dragging the S&P 500 down about 0.3% for the day yet it still logged its fourth positive week in five.

Overall, the index had a quietly constructive week, adding roughly 1% in total as it digested economic signals and Fed expectations.

On the data front, July’s consumer inflation held steady at an annual 2.7%, matching expectations and offering some reassurance to markets. Still, producer prices (PPI) rose 3.3% the biggest jump in five months hinting at rising pressure in the wholesale pipeline. That mix of steady CPI and higher PPI gave markets some pause even as rate cut optimism held sway.

A few individual stocks also stood out. UnitedHealth Group surged about 12% on reports that Berkshire Hathaway had taken a roughly $1.6 billion stake in the company. Applied Materials gave investor confidence a good old knock after issuing a weaker forecast despite beating earnings, and Micron hovered near technical buy points before fading.

As everyone looks forward to the Jackson Hole event and Chair Powell’s remarks, Goldman Sachs has decided to add a cautious note warning of an trouble ahead. They stated high valuations, combined with geopolitical risk could make the next big move highly probable to be a downward one.