Looking Ahead to September
September can be one of the most volatile months for stock market movement. Even though the economy is very strong, there are slight indicators that suggest we could have a near-term pullback. As the market reaches new highs, many traders tend to sell and move the market, so volatility in September could be a reality.
More than likely, there will be another 0.25% rate hike in September. The Federal Reserve Bank believes that the economy is strong and inflation is on track, so they will probably continue to slowly raise rates.
As the stimulus from tax cuts are fully implemented, the initial benefits are likely to fade over the coming quarters. This may prompt companies to adjust expectations. However, we expect that the GDP will remain at good levels.