AI, Cash, and Apple’s iPhone: Potential Positive Market Catalysts for September

September is historically known as the worst month for stocks, with the S&P 500 declining more than half the time and an average return of -0.73% since 1945, according to CFRA. However, experts suggest that this September might not be as bad as history predicts.

Carson Group chief market strategist Ryan Detrick pointed out that when the market is up over 10% for the year going into September, it tends to perform better during this traditionally troublesome month. This positive outlook is supported by several factors that could potentially buck September’s usual downward trend.

One of these factors is the excitement surrounding artificial intelligence (AI). AI-related stocks, such as Nvidia, Meta, and Microsoft, have been among the market’s best performers this year. Companies across various industries have also embraced AI, highlighting its transformative potential in sectors like travel, healthcare, and manufacturing. Upcoming announcements from Microsoft, Meta, and Salesforce in September are expected to further boost investor sentiment towards AI.

Investors holding cash or investing in cash-related products could also contribute to a positive market catalyst. With higher rates and uncertainty over the Federal Reserve’s monetary policy, more investors are opting to hold cash. This excess cash on the sidelines could help the market regain momentum and drive further gains.

Additionally, Apple’s upcoming product event on September 12 could be a positive catalyst for the market. Apple’s dominance in equity markets, coupled with its run to $3 trillion in market value earlier this year, suggests that an impressive lineup of products, including the rumored iPhone 15 and new Apple watches, could have a significant impact.

While the “September effect” has historically been negative for stocks, these factors give investors reason to believe that there’s a chance markets could surprise to the upside this year. Only time will tell whether these predictions hold true, but the potential for positive market catalysts in September offers a glimmer of hope for investors.

Seana Smith is an anchor at Yahoo Finance. Follow Smith on Twitter @SeanaNSmith. For tips on deals, mergers, activist situations, or anything else, email seanasmith@yahooinc.com.

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What role does the Federal Reserve’s monetary policy play in supporting stock prices and could it continue to do so in September

Trends.

One factor is the growing optimism surrounding the global economy. As countries continue to recover from the impact of the COVID-19 pandemic, economists believe that the positive momentum could carry into the stock market, potentially offsetting September’s historical downtrend.

Another factor is the Federal Reserve’s monetary policy. The central bank has been signaling its commitment to keeping interest rates low and providing ample liquidity in the markets. This accommodative stance has helped support stock prices in recent months and could continue to do so in September.

Additionally, the ongoing vaccination efforts against COVID-19 provide a glimmer of hope for businesses and consumers. As more people get vaccinated and restrictions are lifted, economic activity could see a boost, translating into higher stock prices.

However, despite these potential positive catalysts, it’s important to note that September still poses risks. Uncertainties such as the potential for new COVID-19 variants, geopolitical tensions, and inflation concerns could still weigh on investor sentiment.

So, while September has historically been a challenging month for stocks, there are reasons to believe that this year might be different. The combination of a strong market performance year-to-date, favorable economic conditions, and central bank support could help offset any potential negative influences. As always, investors should remain cautious and monitor market conditions closely.