Learn from history, the Fed's interest rate cut may break the US stock market's September curse
Source: Htx
Time: 2025-09-08 18:45:31
Huobi HTX reported that there is an old saying on Wall Street that September is often the worst month of the year for the U.S. stock market, and this view has also been supported by data from the past decades. However, based on history, the usual seasonal weakness may not occur this month, as Fed policymakers appear to be ready to continue to cut interest rates in their next meeting. “
Expectations of the Fed's rate cut later this month may help reverse that trend," said strategist Nathaniel. "When the Fed lowers interest rates in a non-recession environment, the rate of return in September will usually be higher. "According to data analysis by Welnhofer, the S&P 500 has fallen by 1% in September since 1971, but when the Fed lowered interest rates without shrinking the economy, the index rose by 1.2% in September. The latest exception to breaking the September curse occurred last year, when Fed officials cut interest rates by 50 basis points, and the S&P 500 rose by 2% that month. (Golden Ten)