Learning from history, the Federal Reserve's interest rate cut may break the September curse for U.S. stocks

Wall Street has an old saying that September tends to be the worst month of the year for U.S. stocks, a view that is also supported by data from past decades. However, taking history as a guide, the usual seasonal weakness may not materialize this month as Federal Reserve policymakers appear poised to continue cutting interest rates at their next meeting. "
Expectations that the Fed will cut rates later this month could help reverse the trend, "said strategist Nathaniel." When the Fed cuts rates in a non-recession environment, returns are typically higher in September. "Since 1971, the S & P 500 has fallen by an average of 1% in September, but it has risen by an average of 1.2% in September when the Fed cuts rates without a contraction in the economy, according to Welnhofer Analytics. The most recent exception to the September spell was last year, when Fed officials cut rates by 50 basis points, and the S & P 500 gained 2% that month. (Golden Ten)