Stock Market Investors Just Got Bad News About President Trump’s Economy. History Says This Will Happen Next.

Key Points The Federal Reserve recently raised its benchmark interest rate for the first time in more than three years, marking the beginning of a new tightening cycle. President Trump’s policies, especially tariffs and military action in Iran, have contributed to the inflation that made that rate hike necessary. Historically, the S&P 500 and Nasdaq Composite have frequently dropped into correction territory following the first rate hike in a new tightening cycle. 10 stocks we like better than S&P 500 Index › Since 1928, the S&P 500 (SNPINDEX:^GSPC) has declined in September 55% of the time, losing an average of 1.1%, according to Yardeni Research. Both metrics make September the worst month of the year for the U.S. stock market.