The market is on its back foot, having ceded the advantage it gained in mid-June. Federal Reserve Chair Jerome Powell spooked the market on Friday with his comments on inflation and monetary policy outlook.
With the second-quarter reporting season drawing to a close, the market is entering a period of lull, characterized by very few trading catalysts. The S&P 500 Index hit a 52-week low of 3,636.87 on June 17 before beginning to stage a recovery. From this bottom, the index rallied to a high of 4,325.28 on Aug. 16, a trough-peak gain of about 19%.
It has since pulled back. The broader gauge is yet to turn to the black for the year and is down about 15% year-to-date.
Past Performances Temper Hopes: September is historically a not-so-positive month for stocks. The S&P 500 has clocked in an average loss of about 1% in September, Barron’s reported, citing data going back to 1928.
Data shared by trading platform Trend Spider confirms the same. Apple Inc (NASDAQ: NASDAQ:AAPL) closed lower 70% of the time in September, the platform said on Twitter (NYSE:TWTR). This does not bode well for the S&P 500 Index, given Apple has a 7.4% weighting in the index.
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