Welcome to Extreme Investor Network, where we provide unique insights and valuable information for traders looking to stay ahead in the market. Today, we are diving into the current market trends and what you need to know to navigate through the turbulent month of September.
The bad news is that September is historically the worst month of the year for the Dow Industrials, S&P 500, NASDAQ, and Russell 2000, according to the Stock Trader’s Almanac. But don’t let that discourage you, as there is plenty of good news to balance out the bad. Seasonality and the upcoming elections are creating uncertainty, but there are several positive factors to consider.
Despite the seasonal challenges, the market is showing strong momentum for several reasons. First, the market “broadening” trend is real, with two-thirds of the S&P 500 seeing gains in August. Additionally, earnings remain strong, with a 13% growth in the second quarter and expectations for continued growth throughout the year. Megacap Tech may have had a lackluster August, but other sectors like Consumer Staples, Real Estate, Health Care, Utilities, and Technology were leaders.
Sentiment among traders is bullish but not overly optimistic, indicating a healthy balance in market outlook. Inflation is also waning, with the July Core PCE dropping to 2.5%, nearing the Fed’s 2% target. The potential for Fed rate cuts is another supportive factor for the market, with the majority of traders expecting a 25 basis point cut in September.
While there are challenges ahead, the overall market outlook remains positive. Traders should stay informed, watch for signs of job market deterioration, and be prepared to act accordingly. At Extreme Investor Network, we provide you with the latest insights and analysis to help you make informed decisions in today’s dynamic market landscape. Stay tuned for more updates and valuable tips to elevate your trading strategies.