The first half of September is over and the myth about the month’s volatility has already started showing up in Wall Street. Historically, September is known as the worst-performing month in Wall Street. The S&P 500 has lost 1% on average in September since 1928 to 2019, and 0.4% on average in the last 25 years.
The Dow has lost 1% on average in September since its inception and 0.3% on average in the last 30 years. The Nasdaq Composite has lost 0.5% on average in September since its inception in 1971.
However, upon taking a closer look at the Dow Index — popularly known as the blue-chip index — we find four stocks that currently hold a favorable Zacks Rank. These stocks have performed strongly this year and are likely to maintain the tempo in the near future.
Dow Lagging Its Peers Year to Date
The Dow is clearly lagging its peers this year. Although the index has climbed 53.9% from its recent low recorded on Mar 23, the S&P 500 and the Nasdaq Composite have jumped 54.5% and 66.6%, respectively, in this period. More importantly, year to date, the Dow is still down 1.8% while the S&P 500 is up 4.8% and the Nasdaq Composite has surged 23.2%.
On Aug 18, the S&P 500 surpassed its pre-pandemic all-time high posted on Feb 19. Thereafter, the index recorded its latest all-time high of 3,588.11 on Sep 2. On Jun 5, the Nasdaq Composite outpaced its pre-pandemic all-time high posted on Feb 19. Thereafter, the index recorded its latest all-time high of 12.074.06 on Sep 2. However, the Dow is yet to gain 5.5% to surpass its all-time of 29,568.57, recorded on Feb 12.
Dow Outperforms Its Peers in September
An analysis of the trading pattern of this month so