September is proving to be a challenging month for investors, living up to its historical reputation as a tough time for stocks. The S&P 500 experienced a significant decline of 4.2% last week, driven by growing concerns regarding the U.S. economy’s health. The monthly jobs report released on Friday revealed that job additions fell short of expectations, while Tuesday’s disappointing manufacturing data resulted in the index’s worst performance since early August.
Historically, September has been the weakest month for the S&P 500, with the index declining an average of 1.2% since 1928. In fact, it has ended lower 56% of the time during this period, according to Dow Jones Market Data.
As investors look ahead, all eyes will be on Wednesday’s inflation report to assess whether price pressures are easing. Additionally, the performance of major tech stocks, particularly Nvidia, will be closely monitored as they attempt to recover from recent losses. Analysts and portfolio managers are grappling with a more pessimistic outlook following a robust rally in the first half of 2024.
“We were already tensed up [ahead of the jobs report], and now it seems like economic data is not moving in the right direction,” said Callie Cox, chief market strategist at Ritholtz Wealth Management.
The Federal Reserve is widely anticipated to cut interest rates at its upcoming meeting on September 18. The key question remains whether the Fed will opt for a traditional quarter-percentage point reduction or take a more aggressive stance with a half-point cut.
Market observers, including Cox, were left wanting for clarity after the jobs report. While job growth in August was stronger than the previous month, the overall numbers still fell short of expectations, and the unemployment rate edged down.
Some investors are advocating for a more substantial rate cut to stimulate the labor market, while others express concern that such a move could send a negative signal to financial markets, potentially triggering a deeper downturn.
In addition to the uncertainty surrounding the Fed’s plans, market volatility is expected to persist as the November election approaches. Historically, October has been the weakest month for stocks during election years, with the S&P 500 averaging a decline of 1.4% since 1980.
Despite the S&P 500 being up 13% year-to-date, sentiment has shifted in recent weeks. The weaker-than-expected jobs report in July raised questions about the economy’s resilience and whether the Fed had delayed necessary rate cuts. The unwinding of popular trades on August 5 further exacerbated the situation, leading to the S&P 500’s worst day in nearly two years.
This downturn has reshuffled the market’s winners and losers, with Nvidia and other AI-related stocks losing some of their luster. Nvidia’s stock plummeted 14% last week, erasing a staggering $405.7 billion in market value—the largest loss for any company on record. In response, investors have shifted their focus to defensive stocks, with only the consumer staples and utilities sectors showing gains this month.
- Concerned about your life’s savings as the multiple challenges decimate retirement accounts? You’re not alone. Find out how Genesis Precious Metals can help you secure your wealth with a proper self-directed IRA backed by physical precious metals.
Should the S&P 500 finish September in the red, it would mark its fifth consecutive decline for the month.
The extent to which the so-called “September effect” influences market behavior remains uncertain. One prevailing theory suggests that traders returning from vacation may sell off their winners and harvest tax losses, amplifying market movements, according to Jay Woods, chief global strategist at Freedom Capital Markets.
“September kicked us in the teeth on day one,” Woods remarked. “Now, we’ll have to see if we can recover.”
Despite the recent market downturn, some metrics indicate that stocks may still be overvalued. Companies within the S&P 500 are currently trading at 21 times their projected earnings for the next 12 months, surpassing the 10-year average multiple of 18, as reported by FactSet.
In the bond market, Treasury yields fell following the jobs report, with the benchmark 10-year Treasury yield closing at 3.710%, its lowest level of the year. Typically, bond yields decline as prices rise, as investors seek the safety of U.S. Treasurys during turbulent market conditions.
“The question is how much does the Fed need to react to the idea of a slowing labor market as opposed to a shrinking labor market,” posed Steve Sosnick, chief strategist at Interactive Brokers.
As September unfolds, investors will be keenly watching for signs of recovery amid the prevailing uncertainty.
It’s becoming increasingly clear that fiat currencies across the globe, including the U.S. Dollar, are under attack. Paper money is losing its value, translating into insane inflation and less value in our life’s savings.
Genesis Gold Group believes physical precious metals are an amazing option for those seeking to move their wealth or retirement to higher ground. Whether Central Bank Digital Currencies replace current fiat currencies or not, precious metals are poised to retain or even increase in value. This is why central banks and mega-asset managers like BlackRock are moving much of their holdings to precious metals.
As a Christian company, Genesis Gold Group has maintained a perfect 5 out of 5 rating with the Better Business Bureau. Their faith-driven values allow them to help Americans protect their life’s savings without the gimmicks used by most precious metals companies. Reach out to them today to see how they can streamline the rollover or transfer of your current and previous retirement accounts.
Biden-Harris Price Controls Causing Senior Drug Prices to Skyrocket
by American Greatness
If there’s one axiom, we all know about Washington, D.C., is that it’s full of well-intentioned policies and unintended (read: harmful) consequences. A recent reminder of unintended policy consequences is the so-called Inflation Reduction Act (IRA). The IRA was passed in August 2022, and according to its champions in Congress…
Carney on ‘Kudlow’: The Fed Tied Its Own Hands With Rate Cut Decision
by Breitbart
On Wednesday’s broadcast of the Fox Business Network’s “Kudlow,” Breitbart News economics editor John Carney stated that the Federal Reserve should have waited until after the election to make rate cuts and that by announcing a cut of 50 basis points now, the Federal Reserve has locked itself into doing…
Leftists Deserve the J6 Treatment
by J.B. Shurk
Remember: illegally appointed special counsel Jack Smith is prosecuting President Trump in D.C. for exercising his constitutional right to free speech after the 2020 election. Smith’s case essentially claims that Trump was not entitled to question the legitimacy of the mail-in ballot–tainted election and that his refusal to concede to Joe Biden…
CEOs Scale Back Hiring Plans Amid Weaker Sales Projections, Cooling Economy
by The Epoch Times
America’s corporate leaders plan to pull back on hiring over the next six months and expect a slowdown in sales, according to a survey of CEOs, which comes as cooling in the jobs market has prompted the Federal Reserve to deliver a significant 50 basis-point rate cut. The Business Roundtable’s…
Special:
Stock up on long-term storage steak with 25-year shelf-life and take advantage of 35% off with promo code “freedom35” – this week only. Visit Prepper All-Naturals and secure your family’s future with freeze dried Ribeye, NY Strip, Tenderloin, and more.
SAVE Act Paired With Spending Package Fails to Pass House
by The Post Millennial
On Wednesday, the SAVE Act, paired with a stopgap government funding package, was voted down with 202 yeas and 220 nays. This comes as illegal immigration and border security combined with concerns over voter fraud have been raised in the country. The Safeguard American Voter Eligibility (SAVE) Act paired with…
Top 5 Prepping Myths Debunked
by Natural News
Preppers don’t always have a good reputation. In fact, non-preppers might even think preppers are paranoid hoarders or gun-crazy hermits. But that’s the furthest thing from the truth. In reality, preparedness is about making sure your family is safe during emergencies. It’s also focused on self-sufficiency. Below are common myths…
Less Than 50 Days Until Life in America Changes Forever, and Our Nation Is Primed for Massive Civil Unrest
by Michael Snyder
(The Economic Collapse Blog)—Years of extremely inflammatory rhetoric from the mainstream media and from many of our leaders have brought us to the brink of a societal nightmare. The numbers that I am about to share with you are horrifying, but it is so important for us to understand what…
Car Insurance up a Whopping 55% in Biden-Harris Admin’s America
by Breitbart
Car insurance rates have skyrocketed under the leadership of President Joe Biden and Vice President Kamala Harris, and Americans are feeling the squeeze. Data from the Bureau of Labor Statistics show that car insurance prices rose 55 percent from January 2021 — when Biden and Harris first took office —…
Americans Concerned About Retirement Should Work With This Christian Gold Company… Even if They’re Not Christians
by Sponsored Post
It isn’t difficult for Christians to embrace the tenets of the Bible. Contrary to popular belief, a Biblical worldview is not restrictive. It is empowering. It is not boring. It is thrilling. The only thing that makes it challenging is our nature as flawed humans, but we should strive to obey what Jesus Christ told us in Matthew 22:37-40 …
The Secret Service Has a $3B Budget. It Doesn’t Need More Money.
by Frontpage Mag
The usual D.C. response to government failures is to call for more money. This time it’s for the Secret Service. There’s now a back-and-forth between congressional Republicans and Democrats over Secret Service funding. The Dems and the media are playing the usual Catch-22 game. Either Republicans increase spending or the…
Economist Group Has 45 DEI Panels, Refuses One on Hayek
by The College Fix
The American Economic Association found space for at least 45 panels on DEI at its upcoming conference – but had no room for a discussion about economist Friedrich Hayek. Chapman University Professor Mark Skousen revealed how he wanted to organize a discussion about Hayek, a Nobel Prize-winning libertarian economist famous…
Oracle Founder Larry Ellison Imagines a Dystopian Future of Constant AI-Powered Surveillance to Enforce “Best Behavior”
by Didi Rankovic, Reclaim The Net
(Reclaim The Net)—Larry Ellison, co-founder, chairman of the board, and chief technical officer of Oracle, has revealed where he sees the world going in one particular aspect – continuous, real-time control of people. It is a dark place of “AI” (machine learning, ML) mass surveillance, which Ellison wants to make…
Tim Walz Stumped By Question on Inflation; Repeats Lie About Trump ‘Sales Tax’
by Breitbart
Minnesota Gov. Tim Walz, the Democratic nominee for vice president, was stumped Tuesday when asked by a reporter to explain what he and Vice President Kamala Harris would do for families struggling financially. In an interview with local Macon, Georgia, CBS affiliate WMAZ, Walz first said that he and Harris…
Shocking Number of Democrats Say America Would Be “Better Off” if Trump Had Been Killed
by Rob Bluey
(The Daily Signal)—More than 1 in 4 Democrats believe America would be better off if former President Donald Trump had been assassinated, according to a poll released Wednesday. Veteran pollster Scott Rasmussen‘s national survey of 1,000 registered voters, conducted by RMG Research for the Napolitan News Service, asked Americans about…
Kamala Harris Says She is Open to Slavery Reparations and Won’t Discount ‘Executive Action’ (VIDEO)
by The Gateway Pundit
Vice-president Kamala Harris has signalled her openness to the idea of reparations for black people, saying she would not rule out executive action if she wins the White House in November. Speaking to the National Association of Black Journalists on Tuesday, Harris was asked about her position on the issue,…