Stock Market Pullback Looms as September Seasonality Weighs on S&P 500
September has historically been the worst-performing month for the S&P 500, with an average decline of 1.17% since 1927 occurring 56% of the time. Carson Group's Ryan Detrick notes this trend has held over the past 70 years, while Universa Investments' Brandon Yarckin warns of dangerous market conditions where traditional diversifiers like bonds struggle to offset equity risks.
Valuation concerns compound the seasonal headwinds - the S&P 500 trades at 23x forward earnings amid sticky inflation. The University of Michigan's August inflation expectations rose to 4.8%, while Core PCE data continues running hot. This combination of technical and fundamental pressure creates fertile ground for a correction following the index's 30% rally since April.
