Despite a modest decline today, stocks enjoyed a September for all time.
The Dow Jones industrials ($INDU) finished September with a 7.7% gain. The Standard & Poor's 500 Index ($INX) was up 8.8%. Both enjoyed their best September performances since 1939. The Nasdaq Composite Index ($COMPX) added 12% for the month, its best September since 1998.
Since 1950, September has normally been the weakest month for stocks, but this time it confounded many analysts. They'd confidently expected the market to slide further after a weak August performance because of worries that the economy was about to sink back into recession.
And many who predicted a bad September see a weak October ahead. The economy faces too many head winds in the months ahead to move higher, they argue.