Overview
- The S&P 500 has shown a modest pullback this month, falling roughly 1.3% from the start of September as of Tuesday and putting recent gains under pressure.
- Market participants point to rising long‑term U.S. Treasury yields, persistent inflation data and geopolitical tensions as the main near‑term drivers of higher volatility.
- Long‑run data show September is the weakest month for the S&P 500, with a negative 1.1% average return since 1928 and a negative median return that is unique among months.
- Many advisers and analysts caution that selling in response to short‑term swings often hurts long‑term returns and note that a large share of the market’s best recovery days occur around corrections.
- The pullback follows a strong 2026 rally and multi‑year highs in August, and some forecasters expect a stronger market after the November midterm elections, which could prompt a post‑election rebound.