Why September Is The Stock Market's Worst Month

September has a reputation on Wall Street, and the numbers back it up. Since 1928, the S&P 500 has averaged a decline of roughly 1.2% every September, making it the only month of the year with a negative long-term return. The index has finished September in the red 55% of the time, according to RBC Wealth Management, and Bank of America data pegs the average September loss at 1.17%. Nobody can prove exactly why it happens, but the leading theories point to fund managers returning from summer vacation and repositioning portfolios, plus mutual funds doing rebalancing and tax-related housekeeping heading into the fall. That combination of behaviors is the origin of what traders call the September Effect. Watch our full breakdown of Wall Street's most dangerous month on the channel. $SPY. #SeptemberEffect #StockMarket #Investing 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 🖥️ Want the same tools the pros use—without the $10K Bloomberg terminal? Benzinga Edge gives you real-time portfolio alerts, weekly stock picks, and pro-grade research in one command center. 👉 https://bit.ly/4unSKiB ------------------------------------------------------------------------------------ 📲 Follow us on socials @benzinga 🔔 Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes.