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Comment on The air begins to leak out of the overinflated AI bubble

sugar_in_your_tea@sh.itjust.works ⁨2⁩ ⁨months⁩ ago

There’s more to it as well, such as:

investors coming back from vacation and selling off losses and whatnot
investors expecting reduced spending between summer and holidays; we’re past the “back to school” retail bump and into a slower retail economy

September is pretty consistently more volatile than other months, and has net negative returns long-term. So it’s not just the Fed discussing rate cuts (that news was reported over the last couple months, so it should be factored in), but just normal sideways trading in September.

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iopq@lemmy.world ⁨2⁩ ⁨months⁩ ago
We already knew about back to school sales, they happen every year and they are priced in. If there was a real stock market dump every year in September, everyone would short September, making a drop in August and covering in September, making September a positive month again

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- sugar_in_your_tea@sh.itjust.works ⁨2⁩ ⁨months⁩ ago
  It’s not every year, but it is more than half the time. Source:
  
  History suggests September is the worst month of the year in terms of stock-market performance. The S&P 500 SPX has generated an average monthly decline of 1.2% and finished higher only 44.3% of the time dating back to 1928, according to Dow Jones Market Data.
  
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  - iopq@lemmy.world ⁨1⁩ ⁨month⁩ ago
    S&P 500 up this September officially
    
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    sugar_in_your_tea@sh.itjust.works ⁨1⁩ ⁨month⁩ ago
    Woo! We’re part of the 44% or so. :)
    
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