The stock market is in a weird place. It has fallen in most of the trading sessions this month. The S&P 500 (SPX)
, which is the broadest measure of the US stock market, only has four higher closes this month, and one of those was more or less flat. Meanwhile, the Fear & Greed Index is sitting at 35, which signals fear.
Friday was yet another day of losses. The Dow (INDU)
ended down 0.5%, or 166 points, while the S&P 500 (SPX)
and the Nasdaq Composite (COMP)
both closed 0.9% lower.
Clearly investors are a bit rattled. Yet looking at the big picture, stocks are still near record highs. The S&P 500 is just about 2% below its all-time peak.
Investors are in a holding pattern. Many expected the Federal Reserve
to be ready to announce a rollback of its emergency stimulus next week. But after a disappointing August jobs report, that seems less likely.
The Fed’s two mandates are price stability and maximum employment. And with the shortfall…