Stocks closed lower yesterday with all of the major indexes in the red.

The tech/AI profit taking continued. But everything was dragged down along with it.

Yesterday's hotter inflation report didn't help.

And you can also blame renewed Middle East tensions for the extra volatility as well.

But, quite frankly, I chalk most of this up to some long overdue profit taking. And it could very well turn into a pullback for the major indexes.

Pullbacks are defined as a decline between -5% and -9.99%. But they are very common. And they happen on average of 3-4 times a year.

Every bull market has them. And it would be perfectly normal if we got one. Especially after the spectacular rally we've seen over the last couple of months.

But pullbacks are also short-lived. Since 1990, the typical pullback lasted about 28 days.

And if you know pullbacks are commonplace moves, you can instead look at them as opportunities to buy rather than places to sell.

Yesterday's Consumer Price Index (CPI) retail inflation report gave further excuse to pull some profits. The monthly headline number actually eased a bit at 0.5% m/m vs. last month's 0.6%, and views for 0.5%. The y/y rate, however, increased to 4.2% vs. last month's 3.8% pace, but in line with estimates. The monthly core rate (ex-food & energy) also eased a bit at 0.2% m/m vs. last month's 0.4% pace, and expectations for 0.3%. The y/y rate ticked up to 2.9% vs. last month's 2.8%, but even with the consensus.

Today we'll get another look at inflation with the Producer Price Index (PPI) wholesale inflation report.

The market also sold off with the resumption of military action.

After an Iranian drone downed a U.S. Apache helicopter on Tuesday (the two pilots were rescued and uninjured), the U.S. retaliated by launching "self-defense strikes."

Iran struck back by attacking U.S. targets in other countries such as Jordan, Bahrain and Kuwait.

On Wednesday, President Trump said "Iran has taken too long" to agree to a peace deal, and "now they will have to pay the price." On Wednesday evening, the U.S. launched a second day of attacks.

The White House still seems open to a negotiated settlement. But talks appear stalled for now.

Whether this gets Iran back to the negotiation table, or hardens them even further is unknown.

But the uncertainty is definitely exacerbating the recent volatility.

In other news, only two more days until Friday's SpaceX IPO.

The IPO is expected to raise up to $75 billion, with an expected valuation of $1.75 to $2 trillion.

But interest in the IPO goes beyond Elon Musk's SpaceX. Investors are fascinated by the empire of companies Mr. Musk is building (Tesla, Neuralink, X, Boring Co., xAI, Starlink, etc.), and how they might all tie together one day.

Given the buzz around what is likely to be the largest and most anticipated IPO of all time, we are broadcasting a live event covering the SpaceX IPO on Friday, June 12, at 11:00 AM ET.

Join our Zacks experts Tracey Ryniec and David Bartosiak as they cover all things SpaceX, and the interconnectedness of Elon Musk's companies and what it could mean for investors. And they'll be answering questions from fellow Zacks members.

Don't miss this live event, and be a part of history in the making as SpaceX makes its debut.

The SpaceX IPO Live Coverage begins on Friday, June 12, at 11:00 AM ET.

Best,