Investors in the US stock market are bracing for potential turbulence in September, as the market faces crucial economic data releases, a Federal Reserve rate decision meeting, and concerns about a possible government shutdown.
According to CFRA data, the S&P 500 index has averaged a 0.7% decline in all Septembers since 1945, making it the weakest-performing month of the year.
Jack Janasiewicz, Portfolio Manager at Natixis Investment Managers Solutions, noted that this Friday will bring the first key economic data point as August nonfarm payrolls data is released. If the job data exceeds expectations, it might reignite concerns about inflation. On the other hand, if the job data falls well below expectations, it could trigger worries about the Fed‘s rate hikes potentially impacting the economy.
