Treacherous September Is Leaving Traders Everywhere on Edge
September has historically posed challenges for traders, as evidenced by the performance of various asset classes during this month. The U.S. stock markets have frequently experienced declines, with the S&P 500 Index and the Dow Jones Industrial Average recording significant losses, marking some of the biggest percentage declines observed since 1950. This trend extends to other asset classes as well; bonds have historically slid in eight out of the last ten Septembers, and gold has seen losses in every September since 2017. The trend indicates that traders often reassess their portfolios after the summer lull, leading to increased volatility and potential losses throughout the month.
Economic Update: September 2, 2024 | Traders' Insight
In terms of economic data, the recent GDP growth figures are noteworthy. The second quarter of 2024 showed a robust growth rate of 3.0% on a quarter-on-quarter seasonally adjusted annualized rate (q/q saar), significantly higher than the previous quarter's growth of 1.4%. This uptick can be attributed largely to consumer spending, which was revised upward by 2.9%. Meanwhile, inflation appears to be stabilizing, with headline inflation increasing by only 0.2% month-on-month (m/m) and 2.9% year-on-year (y/y), marking the slowest growth in inflation since March 2021. Core inflation also mirrored this trend, rising 0.2% m/m and 3.2% y/y. These figures indicate a potentially favorable economic environment but are juxtaposed with the seasonal volatility that September usually brings.
We Haven't Even Reached the Worst Part of September for Markets
As of early September, the S&P 500 has already experienced a decline of 2.3% within the first two trading days, with a particularly notable drop of 2.1% on the first Tuesday of the month. Historical data suggests that the median return for the S&P 500 tends to be negative during the last ten days of September, which raises concerns about further declines. Economic forecasts anticipate that approximately 161,000 jobs were added in the latest report; however, private payroll figures released by ADP fell short of these expectations, reporting an increase of only 99,000 jobs last month. This inconsistent job growth could further contribute to market anxiety as traders navigate through the upcoming weeks.
Stock Market News for September 4, 2024 – CNBC
The latest information from the stock markets reveals a bearish sentiment among investors. On September 4, U.S. stock futures showed a decline, with the S&P 500 experiencing its largest drop since early August. Futures for both the S&P 500 and the Nasdaq 100 were down by 0.1%, while the Dow Jones Industrial Average fell by 19 points, representing a decrease of about 0.34%. Notably, shares of Nvidia also faced pressure, declining by 2% following reports of subpoenas issued by the U.S. Justice Department. These developments signal a cautious atmosphere in the markets, further compounded by September's historical performance patterns.
This article has been written by AI based on the current market data and research. It is important to note that the information contained herein is for informational purposes only and should not be considered as financial advice. Readers are encouraged to conduct their own research before making any investment decisions.
