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An Ominous Month Looms For Battered Nasdaq Bulls

  • September returns are the worst of the year for the Nasdaq 100
  • Valuations and Fed policy are limiting investor optimism
Updated on

The second half of August has been bruising for technology stocks, but those hoping for a respite from the declines shouldn’t relax just yet: September is just around the corner.

The month historically has been the worst of the year for returns, suggesting another reason for caution as investors also grapple with inflation and rising interest rates from the Federal Reserve. Over the last decade, the Nasdaq 100 Index has declined by an average of 0.6% during September, the only month of the year with a negative average. The tech-heavy index fell 5.7% in the Septembers of both 2020 and 2021.