Stocks close out best August in 36 years
Stock markets closed out their best August since 1984 on Monday, with major indexes gaining upwards of 7 percent.
On the final day of August trading, the Dow Jones Industrial Average retreated 228 points, or 0.8 percent, and the S&P 500 closed down 8 points, or 0.2 percent.
Despite Monday’s fall, the indexes closed out the month with increases of 7.6 percent and 7.2 percent, respectively, according to CNBC, beating August returns for the past 36 years.
The tech-heavy Nasdaq composite rose 80 points, or 0.7 percent, on Monday as splits in Apple and Tesla led to a rush of new buyers.
The overall gains for the months were extraordinary in a time of economic turmoil, where unemployment remains at its highest levels since World War II and the market is recovering from its worst-ever recorded quarterly contraction.
LPL Financial Chief Market Strategist Ryan Detrick said the gains may not hold up in the months leading to the presidential election.
“September is indeed the worst month of the year on average,” he said. “What caught our attention was both September and October have a negative return during election years, with October the worst month of the year.”
Investors, he added, could get jittery as decision time approaches in a close race.