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…

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