S&P Pullback Deepens to 2.4% as Defensives Lead Into FOMC

Equities closed Monday lower into a defined catalyst, with SPY, the most-traded S&P 500 ETF, at $760.88 on Monday, down 0.45% and 2.4% below the $779.37 52-week high just as the Federal Reserve's September decision arrives tomorrow. The pullback builds on Stocks Bounce After a Four-Day Slide, but a Binary Fed Looms , the prior session's bounce off the four-day slide. This is not a panic. It is a deliberate, defensive rotation into a meeting where markets now price an 88% chance of a 25 basis point hike on Sept 16, per Kalshi implied odds.

Key Takeaways SPY fell 0.45% to $760.88 on Monday, leaving the index proxy 2.4% below its $779.37 52-week high, according to Yahoo Finance. Defensive sector…