The S&P 500 fell for a third consecutive day on Thursday as a speculative rally in silver prices came crashing down, dragging on the broader market. But despite the late-month pullback, the benchmark index still managed to post a solid gain for July.

The S&P 500 slipped 0.25% to close at 6,310.24, marking its third straight daily decline. The tech-heavy Nasdaq Composite fared slightly better, inching up 0.02% to 21,085.47. The Dow Jones Industrial Average, meanwhile, tumbled 0.66% to 43,800.68.

What's behind the market's recent weakness? Reuters reports that a speculative frenzy in silver prices has begun to unwind, with the metal plunging over 5% on Thursday. This selloff in silver appears to be spilling over into the broader equities market, as investors cash out of risky assets.

"The unwinding of the silver trade is definitely a factor weighing on sentiment," said Samantha Azzarello, global market strategist at J.P. Morgan Asset Management. "We're seeing a broader risk-off tone as a result."

The silver rout comes after prices for the precious metal surged nearly 50% so far this year, fueled by a social media-driven buying frenzy similar to the GameStop saga. But as the WHO cautions, these types of speculative frenzies often end badly for retail investors left holding the bag.

A Resilient Market

Despite the late-month pullback, the S&P 500 is still on track to post a gain of around 2% for July - its third consecutive monthly advance. This resilience underscores the broader market's ability to weather periodic bouts of volatility.

"The bigger picture here is that the market remains in a solid uptrend," said Mike Wilson, chief U.S. equity strategist at Morgan Stanley. "These dips are healthy reminders that stocks don't go up in a straight line. Investors should view them as buying opportunities rather than causes for alarm."

And with the Federal Reserve maintaining its ultra-accommodative monetary policy stance, there's reason to believe the market's upward trajectory will continue in the months ahead. As NPR reports, the central bank has signaled it won't be raising rates anytime soon, providing a supportive backdrop for equities.