Stock Market Stumble: Seasonal Weakness and Political Turmoil Weigh In

The stock market entered September with a hesitant start as investors navigated uncertainty fueled by fresh legal and political challenges. U.S. equity futures traded sideways following the Labor Day break, mirroring caution about potential future shocks. A federal appeals court struck down much of President Trump’s global tariffs, but his vow to challenge this decision at the Supreme Court signals ongoing market anxiety. The historically weak September performance for the S&P 500, marked by an average decline of over 4%, adds to these challenges. Political volatility combined with market trends like declining investor confidence are pushing traders to adopt cautious strategies.