Is the 'September Curse' Back? This Data Might Bring a Bit of Comfort to Investors

As September commences with its inaugural trading day, U.S. equity markets faced a substantial decline overnight, triggered by economic indicators that rekindled recession apprehensions, recalling the challenging start experienced last month.

However, shifting the perspective beyond the immediate months of September and October, historical trends offer a more positive outlook.

Analyzing the performance of key U.S. benchmarks from Labor Day to year-end, Dow Jones Market Data presents an optimistic picture. Historical figures spanning 1971 to 2023 indicate that major indexes have ended higher approximately 70% of the time during this period:

• The Dow Jones Industrial Average (DJIA) has closed higher 72% of the time, with an average increase of 2.7%.

• The S&P 500 (SPX) has seen gains 70% of the time, averaging 2.8% growth over the period.

• The Nasdaq Composite (COMP) has risen 68% of the time, with an average gain of 3.4%.