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Investors in American stocks were able to climb the walls of anxiety during the third quarter, and the indices survived the September declines, as the three indices, the Dow Jones, the Standard & Poor’s 500, and the Nasdaq, rose..
US stocks suffered at some points in the third quarter, leading investors to question whether the big gains achieved in 2024 have the staying power. It is worth noting that the three-month period contained the global market defeat on August 5, during which the Dow Jones index fell by more than 1,000 points..
But investors were eventually able to climb the walls of anxiety, as the Dow Jones was on track to end the quarter about 8% higher. The S&P 500 and Nasdaq have added about 5% and 2%, respectively, since the beginning of July..
In September, the Dow Jones and S&P 500 rose 1.7% and 1.5%, respectively. The Nasdaq index, which relies on technology, advanced 2.2%. These moves come after the major averages recorded their third consecutive week of gains..
The markets had a difficult start to what is historically the weakest month for the stock market, but they recovered with the Federal Reserve cutting interest rates by a large half point..
Annoying October
“The bull market survived its historically weakest quarter this year,” said Emily Bowersock Hill, CEO of Bowersock Capital Partners. “It is likely to remain healthy through at least the end of the year, as earnings remain strong, interest rates move lower, and consumers continue to spend.”».
Looking ahead, October has a troubling history for the markets. This month is known as a time of extreme volatility, with some of the most pronounced declines occurring on Wall Street during the month.
However, investors are getting excited about stocks in the final stretch of the year, following their highs so far. Analyst Michael Welsh pointed out: Canaccord GenuityThe fourth quarter is usually the strongest for stocks, and ends positively in more than 3 out of every 4 years..
“The market handled the typically difficult month of September better than we expected,” Welch said. “We believe that now is not the time to fight the Fed or the tape, but it is an opportunity to pave the way for a possible rise in the fourth quarter, especially in any decline.”».
