S&P 500’s Banner Rally Faces Off With Worst Two Months of Year

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0;switch(e){case"expanded_panel":o='{promoMarkup}{notifMarkup}',r=n._store.getNotifications(),a=n._generatePanelMarkup(o,r),i.innerHTML=a;break;case"error_panel":a=(o='{errorMsg}').replace("{errorMsg}",n._config.panel.errorMsg),i.innerHTML=a}t&&t()}else t&&t(new Error("No panel parent"))}},{key:"createPanelParentNode",value:function(e){e&&(e.innerHTML='',this._panelNode=document.getElementById(D))}},{key:"updateBadgeNode",value:function(e){if(e){var t=this._store.getNotifications().newCount,n=this._config.badge.maxCount;if(t){var o=t>n?n+"+":t;e.innerHTML=o}else e.innerHTML=""}}},{key:"addStyles",value:function(e){if(e&&"undefined"!=typeof window){var t=document.getElementById(this._config.panel.styleTagId);t||((t=document.createElement("style")).type="text/css",t.id=this._config.panel.styleTagId,t.innerText=e,document.head.appendChild(t))}}}]),e}(),U=function(){function e(t,n,o){L(this,e);var i=this;i._store=n,i._view=o,i._config=t;var 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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};be("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat(Vn)),notifLabel:document.querySelector(".".concat($n))};t.notifDropdown&&ro(e,t)}))}()}};]]>Jessica MentonWed, Jul 30, 2025, 10:30 AM 4 min read(Bloomberg) -- The S&P 500 Index, coming off its best streak of gains since 2020, is about to enter what has historically been its toughest stretch of the year.Most Read from BloombergThe World’s Data Center Capital Has Residents SurroundedAn Abandoned Art-Deco Landmark in Buffalo Awaits RevivalBudapest’s Most Historic Site Gets a Controversial RebuildSan Francisco in Talks With Vanderbilt for Downtown CampusBoston’s Dumpsters Overflow as Trash-Strike Summer Drags OnOver the past three decades, the benchmark has performed the worst in August and September, losing 0.7% on average in each month, compared with a 1.1% gain on average across other months, data compiled by Bloomberg show. Analysts attribute the pattern in part to money managers’ tendency to reassess their portfolios around this time of year.That seasonality risks adding to a sense on Wall Street that the record run in equities may be due for a breather, with valuations looking stretched and some key events approaching. First off, investors will watch Wednesday’s Federal Reserve decision to see whether Chair Jerome Powell lays the groundwork for interest-rate cuts this year, or if he signals more time is needed to observe the impact of tariffs on the economy.“If Powell signals no rate cuts are coming for the foreseeable future, traders will be disappointed, and it may fuel a brief selloff,” said Ed Clissold, chief US strategist at Ned Davis Research. “Any piece of bad news could cause the stock market to pull back.”So far, the S&P 500 has staged a stunning rebound, soaring 28% over the past 75 sessions through Friday — its biggest advance in such a span since stocks recovered from a brutal selloff in the depths of the pandemic in 2020, according to data compiled by JPMorgan Asset Management.The surge pushed investors off the sidelines and back into the market, propelled by a reprieve from President Donald Trump’s tariff offensive.Sensitive TimeBut any shift in tariff news, economic data or corporate earnings could trigger a stock selloff in the sensitive months of August and September.It’s a period when investors returning from summer vacations tend to reassess portfolio positioning and go on the defensive; companies prepare their budgets for the coming year and ponder belt tightening; and mutual funds sell positions at a loss to reduce the size of their capital-gains distributions.Of course, the past is not prologue. August has eked out positive returns in five of the previous 10 years, according to data compiled by Bloomberg.And while traders’ stock exposure has continued to climb, it’s still only modestly overweight, according to Deutsche Bank’s analysis of rules-based and discretionary strategies. That clears the path for investors to buy equities in the weeks ahead after money managers rolled back exposures to US stocks to levels not seen since late May, according to a poll by the National Association of Active Investment Managers.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,347.38 -15.52 (-0.24%)Dow 3044,202.28 -259.00 (-0.58%)Nasdaq21,145.24 +15.56 (+0.07%)Russell 20002,215.27 -17.13 (-0.77%)VIX16.49 +1.01 (+6.51%)Gold3,343.30 -9.50 (-0.28%)PortfolioSign in to access your portfolioSign inTop gainersNEGG Newegg Commerce, Inc. 63.25 +18.28 (+40.65%)APLD Applied Digital Corporation 13.06 +3.03 (+30.22%)PI Impinj, Inc. 158.38 +36.17 (+29.60%)AMSC American Superconductor Corporation 56.87 +12.93 (+29.42%)RSI Rush Street Interactive, Inc. 20.07 +4.01 (+24.99%)Top losersALGN Align Technology, Inc. 128.45 -75.12 (-36.90%)CFLT Confluent, Inc. 17.73 -8.67 (-32.84%)BAX Baxter International Inc. 22.02 -6.03 (-21.52%)CBZ CBIZ, Inc. 60.12 -16.03 (-21.05%)SPSC SPS Commerce, Inc. 110.00 -29.56 (-21.18%)Most activeNVDA NVIDIA Corporation 177.84 -1.43 (-0.80%)APLD Applied Digital Corporation 13.06 +3.03 (+30.22%)NIO NIO Inc. 4.9100 +0.4000 (+8.87%)SOFI SoFi Technologies, Inc. 22.78 +0.91 (+4.15%)F Ford Motor Company 11.03 +0.15 (+1.43%)Earnings eventsTrending tickersFIG Figma, Inc. 112.79 +79.79 (+241.79%)META Meta Platforms, Inc. 773.43 +78.21 (+11.25%)MSFT Microsoft Corporation 532.40 +19.16 (+3.73%)NIO NIO Inc. 4.9150 +0.4050 (+8.98%)APLD Applied Digital Corporation 13.03 +3.00 (+29.88%)Top economic events