Thanks to problems a-plenty, the major indexes suffered their worst monthly losses of 2023 in September. But the declines may trigger a rebound in the fourth quarter.
When given time, Wall Street is a bona fide money machine. Since the start of 2020, the major stock indexes have navigated two bear markets, with the growth-stock-driven Nasdaq Composite taking the brunt of the pain. Last year, the index primarily responsible for pushing Wall Street to new heights in 2021 shed 33% of its value.
Investors don't like September, and this year's stock market performance during the month explains why. After having climbed early Friday, stock markets finished poorly, with only the Nasdaq Composite (NASDAQINDEX: ^IXIC) managing to post a modest gain on the day. Indeed, with energy prices on the rise, there could be more bouts of higher inflation before things settle down.