Welcome to September, Wall Street’s least-loved month

September in markets is a bit like a Monday morning; nobody appears to be like ahead to it, and it often lives up to its fame.

August gave traders lots to cheer about, however historical past says September tends to be the worst month of the year for shares.

The S&P 500 hit a contemporary file excessive on the end of August, topping 6,500, whereas the Dow Jones additionally touched new peaks. Across the Atlantic, the Stoxx Europe 600 logged its first two-month profitable streak since February.

But the specter of September looms giant. Traditionally, the Dow, S&P 500 and Nasdaq Composite all submit their worst month of the yr in September, in accordance to Dow Jones data.

From a sector perspective, it is a combined image, notably in Europe. Two-thirds of the best way by means of the third quarter — pushed by company earnings throughout the continent and continued world macro uncertainty — there are clear winners and losers.

The largest gainer? Europe’s banking sector. Shares hit their highest level for the reason that 2008 monetary disaster firstly of August, as constructive earnings and extra discuss of offers within the house continued to drive progress.

Germany’s Commerzbank has led the cost increased, with shares including to their already spectacular efficiency within the first half, up over 100% yr to date.

On the draw back, media shares have been hit laborious over the previous two months — a decline of over 8% — with issues over the influence of AI hitting a lot of the massive European gamers. Advertising group WPP was the sector’s worst performer, slumping because it reported a 71% pre-tax profit fall within the first half and reduce its full-year outlook.

For September and the yr forward, some market members are constructive. “We believe the equity bull market will remain intact. In our base case, we expect an economic soft landing, solid corporate earnings, and lower interest rates to support markets over the next 12 months,” Mark Haefele, chief funding officer of UBS Global Wealth Management, mentioned in a observe.

Others are extra cautious. EY-Parthenon Chief Economist Gregory Daco says the U.S. financial system is “showing resilience, but it’s under increasing pressure. While the U.S. economy grew at a robust annualized rate of 3.0% in Q2 2025, the strength was largely a mirage, reflecting a sharp decline in imports after businesses accelerated purchases in response to tariffs earlier in the year.” 

Looking forward, a latest Barclays report predicted a slowdown within the second half, however a rebound in U.S. and European financial progress in 2026, saying “markets will move on from reacting to the twin topics of tariffs and the U.S. tax bill.”

As market-makers and traders return from their summer time holidays to rebalance their portfolios, there might be some key moments to be careful for, together with: