August once again lives up to its dismal reputation for stocks

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The S&P 500 is down more than 3% this month, on pace to snap a five-month winning streak.

The S&P 500 is down more than 3% this month, on pace to snap a five-month advance.

The Nasdaq Composite is also headed for its biggest one-month loss since December, falling 5.2%. The Dow Jones Industrial Average has declined 3% in August. There are several things pressuring Wall Street now, ranging from seasonal factors to concerns about the global economy and the Federal Reserve. Here's a breakdown.This behavior, at this time of the year, isn't out of character.

. Go back 20 years and the performance gets worse: The S&P 500 has averaged a monthly 0.1% loss in that time.Lower trading volumes: Trading tends to decline in August as traders and investors go on vacation before the summer ends. This can lead to more volatile swings in prices.

 

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