Wall Street Week Ahead: U.S. stock market surge may run into scary September

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A scorching stock market rally that pushed the benchmark S&P 500 to its best August in more than 30 years is entering what is historically the most volatile two-month stretch of the year, increasing the likelihood of market turbulence in the final stretch before the U.S. presidential election.

FILE PHOTO: The front facade of the New York Stock Exchange is seen in New York City, New York, U.S., June 26, 2020. REUTERS/Brendan McDermid

Thursday’s declines may be a preview for a rocky next two months as institutional investors return from summer vacations and refocus on the potential economic pitfalls in the year ahead, fund managers and strategists said. October has notched the deepest historical declines of any month in both the S&P 500 and the small-cap Russell 2000, with the S&P 500 falling 21.8% and the Russell down 30.8% in 1987, according to CFRA.

 

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the surge is based on umlimited QE. print more and more dollars. the bigger the bubble is. in the end, the faster and deeper the roller coaster goes

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