September could bring significant turmoil to the stock markets, beginning with the S&P 500, which has historically underperformed during this month. With summer drawing to a close, several seasonal stocks may enter a period of stagnation, leading to potential downward trends in the coming days.
Historically, September has been a tough month for US stocks. Since 1928, data reveals that September has consistently been one of the worst months for the benchmark S&P 500, as reported by Yahoo. There’s a strong likelihood that major stocks and assets could yield negative returns this month, reinforcing its unfavorable reputation. Over the last century, the S&P 500 has repeatedly dipped during September, suggesting this trend is likely to continue.
Market volatility also tends to peak in September, earning it a notorious reputation for wild swings. Investors should tread carefully, as the potential for sharp declines could lead to substantial losses.
A critical factor this month is the upcoming Federal Reserve policy meeting on September 18. Additionally, the release of the August jobs report could heavily influence stock performance. If the Fed decides to pursue deeper rate cuts, it could play a crucial role in shaping the direction of US stocks.
FAQs:
- Are US stocks expected to rise this September? Historically, US stocks tend to experience a downward trend in September, making it a challenging month for key stocks.
- Why is September difficult for investors? September has a reputation for delivering negative returns on major stocks, making it one of the riskiest months for investors in the US stock market.
