4. Weekly Market Recap: Key Movements & Insights

September Slump: Navigating the Market's Historically Challenging Month

As we enter September 2024, the financial markets again demonstrate their historical tendency to cool off. In the first week alone, major U.S. stock indices have declined, with the S&P 500 down 4.42%, the Russell 2000 falling 5.98%, and the Nasdaq Composite slipping 6.18%. This aligns with the long-observed "September Effect," a phenomenon consistently making September the worst month for stocks over the past 70 years.

Adding complexity to this year's September scenario is the recent U.S. job data. The economy added 142,000 jobs in August, surpassing July's revised figure but falling short of forecasts. Meanwhile, private sector employment showed more pronounced cooling, with ADP reporting only 99,000 jobs added – the lowest since January 2021. As we navigate this traditionally challenging month, investors must consider both the seasonal trends and the current economic indicators shaping the market landscape.