Remember a few weeks back when we warned that September is historically the worst month for the stock market? Well, this September is bucking the trend.
The S&P 500 has enjoyed 24 record closing highs as of yesterday, which, as the analysts at Bespoke Research pointed out, is above the annual average of 18—but still a far cry from 2024’s 57 record highs. Regardless, the market’s recovery after the Liberation Day selloff has been nothing short of phenomenal, and stocks have really hit their stride in September: The S&P 500 has reached a new record high in 4 of the 10 trading days this month.
Of course, the market’s massive surge has many worried that the rally may be about to run out of steam. Labor market and inflation data point to a possible oncoming recession, while the market’s massive concentration in Mag 7 stocks leaves it vulnerable to a slowdown in the AI trade.
But one Wall Street bigwig still sees good things ahead. Morgan Stanley CIO Mike Wilson recently said that the US has been in a “rolling recession” since 2022, in which different parts of the economy slow at different times but the overall market keeps chugging along. He believes that a “rolling recovery” now lies dead ahead.
“Bottom line, a new bull market for equities began with the trough in the rolling recession that began in 2022,” Wilson said. “It’s still early days for this new bull, which means dips should be bought.”—MR
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