Stocks to End September High with S&P 500 Winning for 5 Months Straight
Stocks are looking to end the month high and defy the expectations for this time of year for the market.
Quick overview
- September is shaping up to be a historic month for the stock market, with the S&P 500 up 0.26% and closing higher than it started.
- The Nasdaq has seen a significant increase of 6% this month, while the Dow has climbed 2.2%, defying typical September trends.
- Positive economic reports and better-than-expected corporate earnings from major tech companies have contributed to the market's resilience.
- Despite concerns about a potential government shutdown, all three major indices closed high, indicating a strong finish to the month.
This could be a historic September for the stock market, with the numbers looking very optimistic as trading closes out for the month and the S&P 500 up 0.26%.
The SPX index is looking to end the month much higher than it started, and that would cap off a five-month streak that defies the fears of investors and economists who were worried about high tariffs and a tightening economy. The S&P 500 is not the only index ending the month high, as the Nasdaq is up 6% in September.
The Dow is likewise trending upward, having made decent progress this month. That index climbed 2.2%in September, which is unusual for this month when most stocks and indices are in the red by the end. The S&P 500 added 3.8% this month as well, rounding out the top three indices and creating a strong showing for the stock market.
Tuesday trading for the last day of the month has not started at the time of writing, but it looks like the market will end on a positive note. All three indices closed high Monday night even with news that a government shutdown could be happening on Wednesday.
Why Stocks Have Remained High in September
September is often the doldrum month of the year for the stock market, closing off the third quarter with a whimper before a strong fourth quarter. That does not seem to be the case for 2025, though, and a big part of the reason is that investors have found that President Donald Trump’s new tariffs throughout the year have not been as damaging and distressing as they had feared.
There have also been a number of positive economic reports that show that inflation is mostly holding steady. Yes, we have seen unemployment climb for some months, but then prices remain lower than expected to balance that out. The economy is weaker in some areas but is doing better than economists anticipated thanks to strong sales, excellent profits, a resilient workforce, and steady international trade.
Major stocks are reporting growth that is exceeding expectations, and those consistent, constant reports from major players like Microsoft (MSFT), Alphabet (GOOG), Nvidia (NVDA) and other tech stocks in particular have helped to keep the overall stock market looking very good.
The final quarter of the year is usually the strongest, and already the stock market is looking very healthy and very resilient. It may be headed to a stellar first quarter, the likes of which we have not often seen. Then again, investors need to be aware of the potential for decline after a period of time when the stock market climbs too quickly and too high.
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