#MarketPullback The U.S. stock market is experiencing a significant pullback today, with major indices down sharply. This is primarily driven by a combination of softer-than-expected economic data and lingering concerns over the Federal Reserve's policy path. The sell-off is broad-based, affecting both growth and value stocks.

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Key Market Performance (As of Midday Trading, ET)

· S&P 500 (^GSPC): Down ~1.5%

· Dow Jones Industrial Average (^DJI): Down ~1.8% (over 700 points)

· Nasdaq Composite (^IXIC): Down ~1.3%

· Russell 2000 (Small-Caps): Down ~2.0% (underperforming)

This indicates a risk-off sentiment where investors are moving away from equities.

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Primary Causes of Today's Pullback

1. Weak Economic Data Sparking Growth Fears

The main catalyst was the release of the August U.S. Durable Goods Orders report, which came in significantly weaker than anticipated. Orders fell sharply, indicating a potential slowdown in business investment and manufacturing. This has shifted investor concern from just inflation to a mix of "stagflation-lite" fears—slowing growth alongside persistent inflation.

2. Federal Reserve Uncertainty

While weak data might suggest the Fed could cut rates sooner, the market is interpreting it differently. The fear is that the Fed will remain "higher for longer" due to still-sticky inflation in services, and that this economic softening could hurt corporate profits without immediately prompting a policy pivot. The market is re-pricing the risk of an economic slowdown that the Fed cannot quickly fix.

3. Technical Breakdown

From a technical analysis perspective, the S&P 500 had been flirting with its 50-day moving average, a key support level. Breaking decisively below this level today triggered automated selling algorithms and prompted further selling from momentum-based traders.