The September curse of the US stock market has come true! BMO Investment Bank says it will not affect the overall annual uptrend
BMO Capital Markets pointed out that despite the frequent weakness in the stock market in September, it will not affect the overall upward trend of the S&P 500 index for the whole year. The recent market has been under pressure due to the decline in NVIDIA's stock price and weak economic data. Despite the downturn, BMO strategist Brian Belski remains optimistic about the future, believing that historical data supports the possibility of further gains by the end of the year
According to the Zhitong Finance and Economics APP, BMO Capital Markets stated that September has gained a reputation as a weak month for the stock market, but this may not affect the S&P 500 index's consolidation of its year-long gains.
As trading in September began this week, the S&P 500 index fell by 2.3% in the first two trading days, with Thursday expected to close lower again. The decline in the stock price of heavyweight stock Nvidia (NVDA.US) and the weakness in manufacturing and labor market data have been pressure points for the stock market in September.
Brian Belski, Chief Investment Strategist at BMO Capital Markets, stated in a report on Wednesday, "It is important to note that we never like to see investors lose money, but at the same time, given the lack of a significant pullback so far this year, we are not entirely surprised by the recent weakness." "Nevertheless, we remain optimistic about the remainder of the year, as history shows that such a significant increase in the year-to-date performance often leads to further gains before the end of the year."
This historical context includes a strong 18.4% increase in the S&P 500 index in the first eight months of this year. Belski mentioned that since 1990, only four years have shown stronger performance - 1991, 1995, 1997, and 2021 - and the S&P 500 index saw further gains before the end of the year in these four years.
The strategist did point out that even with strong market performance, pullbacks in September and the last four months of the year are quite common.
