Stocks fall for the third day in a row. Is this the start of a deeper pullback?

Core Insights - U.S. stocks experienced a pullback contrary to expectations following a Federal Reserve rate cut, leading to a three-day losing streak across major indexes, raising concerns about the sustainability of the bull market [1][2][3] Market Performance - All three major U.S. stock indexes recorded declines over three consecutive days, with the S&P 500 dropping 1.3%, the Nasdaq Composite falling 1.8%, and the Dow Jones Industrial Average decreasing by 0.9% [2][3] Economic Data Impact - The market's downturn followed a week of relatively quiet economic data, but stronger-than-expected economic indicators on Thursday suggested improving labor-market conditions, which altered market expectations regarding the Federal Reserve's future policy [4][5] Market Sentiment - Analysts noted a shift in sentiment, with the prevailing narrative being that "good news is bad," indicating that positive economic data may reduce the likelihood of multiple rate cuts by the Federal Reserve [5][6] Rate Cut Expectations - Current economic indicators, including a GDP growth rate of 3.8% in the second quarter and jobless claims below 250,000, suggest skepticism about the Federal Reserve's ability to implement more than three or four rate cuts, impacting asset valuation [6][7]