Traders work on the floor of the New York Stock Exchange.
new york stock exchange
US stock futures fell towards the final session of what is shaping up to be a winning month and quarter.
futures It fell 56 points, or 0.1%, in line with the Dow Jones Industrial Average. S&P500 futures and Nasdaq 100 futures They decreased by 0.2% and 0.3%, respectively.
The move comes after major average stock prices rose for three consecutive weeks. Monday is the last trading day for September and the third quarter, and despite some hiccups, both are on track to finish higher.
The market got off to a tough start in the weakest month on record for stocks, but bounced back as September progressed as the Federal Reserve cut interest rates by a massive 0.5 percentage point. Month-to-date, the Dow and S&P 500 are up 1.8% and 1.6%, respectively. The tech-heavy Nasdaq rose 2.3% in September.
S&P500, 1 month
The Dow Jones Industrial Average led the quarter, rising more than 8%. Since the start of July, the S&P 500 and Nasdaq have risen more than 5% and 2%, respectively.
Looking ahead, October has a troubling history for the market. This month is known for being extremely volatile, with some of the most notable drawdowns on Wall Street.
Still, investors are looking forward to the stock heading into the end of the year after the rally so far. Michael Welch, an analyst at Canaccord Genuity, said the fourth quarter is usually the strongest for stocks, with stocks ending in the positive at least three times every four years.
“The market weathered a typically difficult September better than we expected,” Welch said. “We are now entering a stronger seasonal period, coupled with the start of the Fed’s easing cycle and favorable technical conditions, which we expect will provide tailwinds into the end of the year.”
“I believe now is not the time to fight the Fed or the tapes,” he added. Rather, “it’s an opportunity to position for a potential fourth-quarter rally, especially if there is a pullback.”