After three straight months of losses, the first such streak for the S&P 500 since March 2020, Wall Street bulls are hanging their hopes for a rally into the end of the year on so-called 'seasonality.
' Historically, the S&P 500, Nasdaq Composite and Dow Jones Industrial Average have outperformed during the fourth quarter. Investors are hoping that despite a setback in October, the trend will repeat itself this year. This, combined with signs that the selloff in stocks is looking overdone, are helping to keep hopes for an imminent turnaround alive.
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