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LivestreamMenuStocks are struggling at the worst possible time. The S & P 500 is down 0.7% this week as of Thursday’s close, putting it on pace for its second straight weekly decline. The decline comes as oil prices surge due to rising tensions between the U.S. and Iran. On top of that, earnings reports from megacaps Alphabet and Tesla left much to be desired for investors. The former fell 7.1% on Thursday, its worst day since May 7, 2025. The latter sank 15%, its biggest one-day fall since March 10, 2025. Seasonality could complicate things on Wall Street even more. The month will end next week, kicking off the worst historical three-month period for the S & P 500. The benchmark falls marginally on average between August and the end of October, data from Bank of America shows. The index is also only up 55.1% of the time during that time period. Both are the lowest on average going back to 1928. “This supports our defensive Q3 bias,” wrote Paul Ciana, technical strategist at BofA. He added that August to October is also a strong period for gold historically. The precious metal averages a total return of 2.5% during those months, going back to 1992, Ciana said. “However, a seasonal correction may present a buying opportunity as late Nov-Jan is the strongest 3-month period for the SPX,” he said. Indeed, the S & P 500 averages a 3.6% return between November and January, with the benchmark up 67% of the time during those months.Read More
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