Markets had a challenging month and quarter, with September being the worst month of the year for the S&P 500 and Nasdaq Composite. However, despite the recent downturn, all three major indexes are still up for the year due to a strong first half. The Dow was down 3.5% in September and 2.6% for the quarter, while the S&P 500 was down 4.9% in September and 3.7% for the quarter. The Nasdaq Composite experienced a decline of 5.8% in September and 4.1% for the quarter. Despite these setbacks, there is hope for a market recovery in the new trading month and quarter.
Lawmakers were able to pass a continuing resolution, avoiding a government shutdown and providing relief for the market. The bill allows the government to operate for an additional 45 days, giving legislators more time to finalize funding proposals. This news is expected to be welcomed by the market and could lead to a rebound after a challenging week. Jamie Cox, managing partner at Harris Financial, anticipates a positive impact on the market as there will be an unwinding of government shutdown selling from the previous week.
Following the temporary agreement that prevented a government shutdown, stock futures opened higher. Dow futures rose by about 155 points, or 0.5%, while S&P 500 futures increased by 0.6% and Nasdaq 100 futures climbed by 0.8%. This positive start to the trading week suggests a potential recovery and renewed investor confidence after the recent market downturn.