The biggest U.S. stocks pullback in months is fraying investors’ nerves ahead of tests to two underpinnings of the market’s record-breaking rally: the artificial intelligence trade and expectations for interest rate cuts.

After a sharp and steady six-month climb, stocks have been sliding in November. The S&P 500 was last down on Tuesday over 3% from its late October all-time high, while the Nasdaq Composite had dropped about 6% from its peak from that time. The S&P 500 on Monday closed below its 50-day moving average, a key intermediate trend indicator, for the first time since April 30. The Cboe Volatility Index, Wall Street’s fear gauge, rose on Tuesday to its highest level in a month.

Several investors said the declines could be healthy for the bull market, to shake out speculative fr

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