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U.S. stocks retreated, with the Standard & Poor’s 500 Index sliding to an almost three-week low, as investors clamor for further clarity on the Federal Reserve’s stimulus policy.

Equities trimmed losses in late-afternoon trading, surging as energy shares rallied with crude oil. Stocks further pared after JPMorgan Chase & Co.’s global head of derivative and quantitative strategies said in note today that technical selling pressure from volatility targeting strategies was largely completed, and in the coming days and weeks flows may be skewed toward buying.

The S&P 500 fell 0.3 percent to 1,932.24 at 4 p.m. in New York, erasing most of an earlier 1.5 percent slide. The benchmark dropped for the fifth time in six days since the Fed cited turbulence in financial markets as reason to stand pat on interest rates. The Dow Jones Industrial Average sank 78.57 points, or 0.5 percent, to 16,201.32. The Nasdaq Composite Index declined 0.4 percent.

“We’re seeing a defensively-led market today,” said Todd Lowenstein, who helps manage $16 billion at in Los Angeles HighMark Capital Management Inc. “I think there are some bargains emerging in the midst of this

indiscriminate selloff. A lot of the daily trading is dominated by algorithms and quants and these dislocations can occur.”

Equities pulled back on Aug. 27 after JPMorgan’s Marko Kolanovic said that “price insensitive” program traders are likely to cause repeated selloffs. Stock reacted again on Sept. 3 as Kolanovic argued that robotic selling by quantitative investment funds tuned to volatility and price trends was only about halfway completed.

Such traders may deliver “$10 billion in purchases over the next few days,” Kolanovic said in a note to clients Thursday. He added that if indexes add 2 to 3 percent in that time, additional technical buying may occur.

After markets closed, Fed Chair Janet Yellen said the U.S. central bank is on track to raise interest rates this year, even as she acknowledged that economic “surprises” could lead them to change that plan.

“Most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter,” Yellen said during a speech in Amherst, Massachusetts. “But if the economy surprises us, our judgments about appropriate monetary policy will change.”

Uncertainty over the Fed’s actions has made equities more volatile in past weeks. The central bank held off raising rates last Thursday and said it would consider spillover risks from global markets. Fed officials have since said a 2015 increase is still warranted.

“The Fed backed themselves into a corner last week by talking about China and emerging markets,” said Andrew Brenner, the head of international fixed income for National Alliance Capital Markets. “The fact that they’re adding China and emerging markets into the mix and then still thinking about raising rates between now and the end of the year is very inconsistent. It adds uncertainty to the market. That’s why equities have been performing poorly since mid-day of the Fed announcement.”

VIX Streak

The Chicago Board Options Exchange Volatility Index, the measure of market turbulence known as the VIX, has closed above 20 for 24 straight sessions, the longest stretch since June 2012. The gauge rose 6.1 percent Thursday to 23.47. About 7.8 billion shares traded hands on U.S. exchanges, 7.9 percent above the three-month average.

Also after the market closed, Nike Inc. posted a fiscal first-quarter profit that topped analysts’ estimates after higher prices and a lower tax rate helped boost results. Shares of the world’s largest maker of athletic gear rose 8.1 percent as of 5:40 p.m.

Prior to the afternoon surge, the S&P 500 was on track to close at its lowest in a month amid more evidence that China’s slowdown and weakness in commodities are having an impact in the U.S. Caterpillar Inc. tumbled 6.3 percent after lowering its sales outlook, and will cut as many as 10,000 jobs over four years in response to a slowdown in the mining and energy industries. Other industrial companies slid amid data showing orders for business equipment stalled.

Fed Odds

Traders are split on whether the Fed will raise rates this year. They are pricing in about a 41 percent chance of an increase in December, down from 49 percent as recently as Monday, and a 49 percent probability in January. Odds of higher borrowing costs by January were 64 percent on the day before last week’s Fed meeting, according to data compiled by Bloomberg.

Meanwhile, investors continue to evaluate economic data for hints on possible Fed action. A report today showed orders for durable goods fell 2 percent in August, reflecting declines in defense and aircraft. Momentum in orders for business equipment stalled following gains the prior two months as U.S. investment took a breather amid volatility in financial markets and concerns that global growth is slowing.

Separate data showed fewer Americans than forecast filed applications for unemployment benefits last week, a sign that a steady labor market will bolster U.S. growth. Another measure showed purchases of new homes jumped in August to a seven-year high.

Seven of the S&P 500’s 10 main groups declined Thursday, with health-care, financial and industrial shares losing the most. Utilities, energy and consumer staples rose.

Biotechnology shares continued to weigh on the broader health-care group. Losses for U.S. biotechs have accelerated since Democratic presidential hopeful Hillary Clinton on Monday suggested there may be “price gouging” in the market for prescription pills. Biogen Inc., Celgene Corp. and Regeneron Pharmaceuticals Inc. slumped at least 1.7 percent. The Nasdaq Biotechnology Index is headed for its worst week in four years, down 8.4 percent.

Financial companies in the S&P 500 fell as investors speculated that low interest rates would continue to crimp profitability. The yield on the 10-Year U.S. Treasury note sank to a two-week low. Morgan Stanley and Goldman Sachs Group Inc. slumped more than 1 percent. Charles Schwab Corp. and Citigroup Inc. dropped at least 1.9 percent.

Caterpillar’s lowered outlook and cost-cutting measures hammered home to investors the troubles faced by large-equipment manufacturers and their commodity producing customers. Rival Joy Global Inc., lost 1 percent, after trimming an early 6 percent drop, to its lowest since November 2008. Another Caterpillar competitor, Deere & Co., fell 2.5 percent.

Energy shares advanced for the first time in three days as oil prices rose. Chesapeake Energy Corp. and Pioneer Natural Resources Inc. gained more than 1.8 percent. Chevron Corp. added 1 percent. Transocean Ltd. bucked the uptrend in energy, falling 4.8 percent after being linked for the first time to the corruption probe of Petroleo Brasileiro SA, the state-owned energy giant at the center of Brazil’s biggest corporate scandal.

— With assistance by Oliver Renick, and Sofia Horta e Costa