For September, the Dow is down 1.5% and the S&P 500 is off roughly 0.9%. The S&P 500 is on track for its worst monthly performance since January.
The recent stock reversal is not astonishing to some investors as its comes after a long tranquil period. According to Dow Jones Market Data, the S&P has increased for seven consecutive months, marking its longest such streak since the 10 months through January 2018, the WSJ reported.
In a survey of global fund managers done in September, Bank of America revealed investors were betting on stock prices rising and inflation pressures easing.
“That’s often how it happens— you have quiet and complacent markets and then a gut check,” Keith Lerner, co-chief investment officer of Truist Advisory Services, told the WSJ.
Yet he stated he remains optimistic about the market’s outlook over the longer term.