Traders work on the floor of the New York Stock Exchange (NYSE), August 15, 2023.Brendan McDermid | ReutersWall Street is really suffering through the dog days of August.The S&P 500 is down more than 3% this month, on pace to snap a five-month-long winning streak. The broader market index is also on track to post its worst monthly performance since December — when it lost 5.9%.The Nasdaq Composite is also headed for its biggest one-month loss since December, falling 5.2%. The Dow Jones Industrial Average has declined 3% in August.These pullbacks are a contrast to the market rally seen earlier this year. The Nasdaq Composite had its best first-half performance in 40 years in 2023. The S&P 500’s gains over the first six months of the year marked the index’s best start to a year since 2021.There are several things pressuring Wall Street now, ranging from seasonal factors to concerns about the global economy and the Federal Reserve. Here’s a breakdown. [embedded content]Tough month for the S&P 500August. Historically a tough monthThis behavior, at this time of the year, isn’t out of character.Over the past 10 years, the S&P 500 has averaged a gain of just 0.1% for August — making it the third-worst month for the index, CNBC Pro analysis of seasonal trends showed. Go back 20 years and the performance gets worse: The S&P 500 has averaged a monthly 0.1% loss in that time.There are several reasons why the market tends to see lackluster performances this month, including:Lower trading volumes: Trading tends to decline in August as traders and investors go on vacation before the summer ends. This can lead to more volatile swings in prices.Booking profits before September: While August is a tough month for Wall Street, it has nothing on September — historically the worst of all months for the market. The S&P 500 has averaged a 0.5% loss in September over the past 20 years. Over the past 10 years, the S&P 500 has fallen an average of 1% each September.”The S&P 500 continues to track its seasonal tendency,” wrote Oppenheimer technical strategist Ari Wald earlier this month. “For S&P 500 levels, we see 4,400 as the start of support (50-day average) that extends down to 4,200 (Feb. peak).”China’s strugglesEconomic data out of China has been lackluster to say the least. The world’s second-largest economy earlier this month reported much we …
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[mwai_chat context=”Let’s have a discussion about this article:nnTraders work on the floor of the New York Stock Exchange (NYSE), August 15, 2023.Brendan McDermid | ReutersWall Street is really suffering through the dog days of August.The S&P 500 is down more than 3% this month, on pace to snap a five-month-long winning streak. The broader market index is also on track to post its worst monthly performance since December — when it lost 5.9%.The Nasdaq Composite is also headed for its biggest one-month loss since December, falling 5.2%. The Dow Jones Industrial Average has declined 3% in August.These pullbacks are a contrast to the market rally seen earlier this year. The Nasdaq Composite had its best first-half performance in 40 years in 2023. The S&P 500’s gains over the first six months of the year marked the index’s best start to a year since 2021.There are several things pressuring Wall Street now, ranging from seasonal factors to concerns about the global economy and the Federal Reserve. Here’s a breakdown. [embedded content]Tough month for the S&P 500August. Historically a tough monthThis behavior, at this time of the year, isn’t out of character.Over the past 10 years, the S&P 500 has averaged a gain of just 0.1% for August — making it the third-worst month for the index, CNBC Pro analysis of seasonal trends showed. Go back 20 years and the performance gets worse: The S&P 500 has averaged a monthly 0.1% loss in that time.There are several reasons why the market tends to see lackluster performances this month, including:Lower trading volumes: Trading tends to decline in August as traders and investors go on vacation before the summer ends. This can lead to more volatile swings in prices.Booking profits before September: While August is a tough month for Wall Street, it has nothing on September — historically the worst of all months for the market. The S&P 500 has averaged a 0.5% loss in September over the past 20 years. Over the past 10 years, the S&P 500 has fallen an average of 1% each September.”The S&P 500 continues to track its seasonal tendency,” wrote Oppenheimer technical strategist Ari Wald earlier this month. “For S&P 500 levels, we see 4,400 as the start of support (50-day average) that extends down to 4,200 (Feb. peak).”China’s strugglesEconomic data out of China has been lackluster to say the least. The world’s second-largest economy earlier this month reported much we …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
