Stormy September lies in wait for markets everywhere

Published On Sep 2, 2024, 8:07 AM

September has historically been a challenging month for traders, with the S&P 500 and Dow Jones Industrial Average often recording their largest losses in this month. The focus for investors is on the impending US jobs report that will inform Federal Reserve policy on interest rate cuts. With increasing uncertainty and the potential for market swings related to economic data, traders are advised to exercise caution. Additionally, the current market is heavily influenced by a few major tech stocks, making it particularly susceptible to sharp declines if those stocks falter.

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Stock Forecasts

SPYView SPY chart on TradingView

Negative

The upcoming non-farm payroll data is critical and could significantly impact market sentiment, especially for tech stocks. If the jobs report shows robust employment growth, which could lead to less aggressive rate cuts from the Federal Reserve, it may trigger declines in the stock market.

XLCView XLC chart on TradingView

Positive

Hedging strategies appear to be relatively inexpensive, which might indicate that volatility is expected. Investors in communication services, energy, and health care might access potential upside if they align with overall market trends rather than solely relying on tech stocks.

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