b Stock and bond investors There was no shortage of gut-wrenching volatility in August, as the S&P 500 and Nasdaq snapped a five-month winning streak, while the Dow Jones Industrial Average posted its worst performance since May as tracked by the Dow Jones Market Information Group.
August month – but 2023 still strong
Nasdaq Composite: -2.2%
YTD: +34%
S&P 500: -1.8%
YTD: +17.6%
Dow Jones Industrial Average: -2.3%
YTD: +5%
Key inflation spells bad news for Americans
Despite the pullback, US stocks are having a strong year, especially the Nasdaq, which has gained more than 34%, helped by companies such as Nvidia, Apple, Amazon and Tesla.
Still, Wilmington Trust CIO Tony Roth took a cautious view in an interview with FOX Business.
“We also don’t think rates will fall any faster, and we believe prices are at least index-level for US stocks. to market, although we are as optimistic as he is. It has to do with the economy.“.
US employers created 187,000 jobs. In August and the unemployment rate was up to 3.8%, many are still expected to remain strong.
US workers added 187,000 jobs, unemployment increased inches.
While Roth expects more of a soft landing than a tough one for the economy, he points to other options in a high-risk environment.
“You have a lot of money that can do very well and you can hide it in cash or short-term high-quality bonds after inflation,” he said. “In an environment where you’re seeing global growth coming in below expectations, you’re seeing stagflation, a very clear slowdown coming out of Europe. You’re seeing China now going into deep economic trouble. All of that points to that. There’s an opportunity for some real selling in the market.”
While September is traditionally the worst month for the Dow and S&P 500 since 1950, according to The Stock Trader’s Almanac, investors may be in a more holding pattern this year.
“We don’t have any income to start for another five weeks or more. You have a federal meeting in mid-September, but it’s the icing on the cake, because they can’t do anything. It’s all about their language.” New York Stock Exchange trader Tim Anderson He observed in an interview on “Cavuto: Coast to Coast”.
The Federal Reserve will meet on September 20. More than 94% of market participants expect policymakers to stand down on prices, as of 2015. CMEs FedWatch tool.
However, Chairman Powell made no promises last month.
Money market funds registered 5.5 trillion dollars
“Continued data on above-trend growth could threaten further growth in inflation and further tightening of monetary policy.” Powell said. The Federal Reserve Bank of Kansas City’s Jackson Hole Economic Policy Symposium last month.
Original article source: Stocks in September can be very small.
