U.S. stocks retreated on September’s first trading day, with the Dow Jones Industrial Average falling 250 points, or 0.7%, the S&P 500 declining 0.9% and the Nasdaq Composite losing 1.2%. Profit-taking after August’s gains, stronger-than-expected employment data and sticky inflation renewed concern about the Federal Reserve’s policy path. As of September 3, futures markets priced a 60% chance of a quarter-point cut at the Fed’s September meeting, down from 75% a month earlier. The 10-year Treasury yield stood at 4.2%, adding pressure to high-valuation technology stocks, while energy and financial shares outperformed. The S&P 500 was testing its 50-day moving average after entering September roughly 8% above its 200-day average, a technical condition Oppenheimer & Co. has historically associated with less severe monthly losses. September has produced an average 0.7% decline for the S&P 500 over the past 50 years, according to CFRA Research. Investors are now watching the September 13 CPI report, the Fed’s policy meeting and whether the index can hold technical support. Market sentiment remained cautious rather than panicked, with the CNN Fear & Greed Index at 45, in neutral territory.