While U.S. stocks continue to push through a challenging summer period, the benchmark S&P 500 index has achieved a significant milestone of reaching 100 trading sessions without posting a daily drop of 1.5% or more. This is the first time that the index has managed this feat since 2018.
Only four drops of 1% or more have been recorded since the S&P 500 peaked for the year, with the index’s resilience largely attributed to market optimism that the Federal Reserve’s policy tightening is nearing its end following peak inflation.
“It’s unusual, but there haven’t been reasons for big drops in the stock market,” Thomas Martin, a senior portfolio manager at Globalt Investments observed. “Unless the Fed really surprises investors this week, there isn’t going to be a reason to reposition because we know rate hikes are nearly done.” After closing relatively unchanged on Monday, the S&P 500 is down 1.2% for September.