After a strong rally in the S&P 500 in August, the US stock market entered September, a typically weak month, with a slight correction. Over the past decade, September has been the worst-performing month for the S&P 500, with an average return of just -0.6%. The index has declined in September in six of the past 10 years.
The most direct trigger for this decline was the latest report released by the US Bureau of Labor Statistics on September 5. According to the report, non-farm payrolls increased by only 22,000 in August, far below market expectations of 75,000, indicating a significant slowdown in job growth, possibly even stagnation.
Furthermore, the employment figures for June and July were revised downward by a combined 21,000, further confirming the deteriorating labor market trend. As a result, market expectations of a rate cut by the Federal Reserve at its meeting on September 17 rose sharply, leading to a…
