September has so far received its reputation as the worst month of the year in the stock markets. The fall of the Dow Jones index and the S&P 500 was close to three percent. Technology stocks depreciated only slightly less.
Monday’s trading on the New York Stock Exchange showed that the trend may change and the bears will gain the upper hand at the expense of the bulls. The main stock indices depreciated more than two percent and are more than five percent weaker than in the middle of last week. The S&P 500 has even written off more than seven percent since the beginning of the month. The development of the last days thus increases the chances that this September could become the worst ninth month of the year in the last eighteen years.
Behind the fall in shares are concerns about the postponement of the fiscal package prepared by the US administration to support the US economy, as well as growing nervousness before the presidential election or the question of whether the shares are no longer too overvalued. The markets were clearly not convinced by the recent confirmation of the monetary policy direction by the US Federal Reserve. It kept the key interest rate close to zero and assured that it would expand purchases of government and some corporate bonds. However, nothing happened that the markets more or less did not expect.