Wall Street traders drove stocks lower as valuation worries overshadowed data showing the economy is holding up. The figures didn’t have much of an impact on Federal Reserve bets, but bond yields rose.

Following a series of record highs, the S&P 500 dropped as much as 1% before paring losses. Just 24 hours ahead of a key inflation report, data showed US gross domestic product grew at the fastest pace in nearly two years.

“We agree that the economy is strong and growing,” said Chris Zaccarelli at Northlight Asset Management, “but a lot of that good news is already priced in. Where we have our largest concern is with valuations.”

An over $15 trillion surge in equities from this year’s lows came on speculation that the economy is not sinking and the market will be bolstered by improving co

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