The Stock Market’s Worst Month Is Here – But This Year Might Be Different

TLDR

• September is historically the worst month for the S&P 500, Dow Jones, and Nasdaq Composite
• The S&P 500 and Dow have each averaged a 1.1% decline in September, with win rates below 45%
• The Federal Reserve’s September 16 rate decision is being watched closely after rate hike odds rose from 35% to 60%
• Fund managers returning from summer breaks tend to rebalance portfolios, which can weigh on markets
• Long-term investors who skip September historically reduce their overall returns and increase their tax burden

September has a bad reputation on Wall Street, and the numbers back it up. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all post their weakest average monthly returns in September, according to Dow Jones Market Data.

Get ready to hear this a lot this week.

Since 1950, September is the worst month
The past 10 years, September is the worst month
The past 20 years, September is the worst month
In a midterm year, September is the 10th worst month (only Jan and June are worse) pic.twitter.com/JHQ7FhDOKa

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