{"id":135119,"date":"2025-09-11T02:12:08","date_gmt":"2025-09-11T02:12:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/135119\/"},"modified":"2025-09-11T02:12:08","modified_gmt":"2025-09-11T02:12:08","slug":"fall-storm-why-a-market-correction-may-be-looming-september-10-2025","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/135119\/","title":{"rendered":"Fall Storm: Why a Market Correction May Be Looming – September 10, 2025"},"content":{"rendered":"

September Market Seasonality<\/p>\n

The month of September is historically one of the worst times to be a bull. Though the Nasdaq 100 Index ETF ((QQQ Quick QuoteQQQ<\/a> – Free Report<\/a>) ) is up 1.81% month-to-date and the current bull market has several bullish catalysts, like the AI revolution, an upcoming interest rate cut from the Federal Reserve, robust GDP numbers, and tame inflation, investors should still beware. Performance from the past decade shows that September seasonal trends can supersede fundamental and economic strength and lead to pullbacks. Over the past decade, the tech-heavy QQQ index has been lower in September in seven instances. Meanwhile, QQQ has averaged a meager 2.57% in the years it gained while averaging losses of -4.42% in the seven years it fell in September. Additionally, while QQQ has displayed few signs of slowing thus far in Septembe investors need to note that most of the weakness historically occurs in the back half of the month.<\/p>\n

\"Zacks
Image Source: Unusual Whales<\/p>\n

Fed and AI Mania: Sell the News? <\/p>\n

Market psychology means that news is often priced in ahead of time. When a stock or market runs up into a highly likely event, investors usually use the liquidity from the actual event to \u201csell the news.\u201d The Federal Reserve\u2019s rate cut is one of the most anticipated events thus far in 2025. Will investors use the event to sell the news?<\/p>\n

Additionally, several AI-related stocks like Arm Holdings ((ARM Quick QuoteARM<\/a> – Free Report<\/a>) ), Astera Labs ((ALAB Quick QuoteALAB<\/a> – Free Report<\/a>) ), CoreWeave ((CRWV Quick QuoteCRWV<\/a> – Free Report<\/a>) ), and Bloom Energy ((BE Quick QuoteBE<\/a> – Free Report<\/a>) ) have gone on tremendous runs recently. In fact, Oracle ((ORCL Quick QuoteORCL<\/a> – Free Report<\/a>) ) shares are up nearly 40% this week and gained $244 billion in market cap on Wednesday alone.<\/p>\n

\"Zacks
Image Source: Zacks Investment Research<\/p>\n

While Oracle\u2019s guidance was spectacular, some profit-taking at this juncture would make perfect sense.<\/p>\n

Tariff Uncertainty Looms Ahead of Supreme Court Ruling<\/p>\n

Markets hate uncertainty, and a significant question mark for investors will be what happens to President Donald Trump\u2019s most significant economic policy \u2013 tariffs. The blanket tariffs imposed globally by the Trump Administration are by far the most prominent Wall Street story of 2025 thus far. Initially, stocks tanked after President Trump\u2019s \u2018Liberation Day\u2019 tariff announcement. Investors were consumed about the dollar losing its reserve status, a recession, inflation, and potential stagflation. Though the sell-off sparked short-term fear on Wall Street, markets soon adjusted as Trump lowered his initial tariff levels, the United States struck deals with key global trading partners, GDP came in strong, and inflation remained tame. Though markets are now comfortable with Trump\u2019s tariffs, Trump\u2019s political rivals are trying to force them to end.<\/p>\n

Usually, tariff legislation must be passed by Congress. However, President Trump and his economic team used the International Emergency Economic Powers Act (IEEPA) to skirt this rule, citing the fentanyl crisis and massive trade imbalances. Recently, a lower court has ruled tariffs illegal. However, the case is being fast-tracked to the Supreme Court, and oral arguments will begin in November. Should the Trump Administration lose the case, not only will tariffs need to be removed, the hundreds of billions in tariff revenue collected will need to be returned. Until a decision is made, the sheer uncertainty is likely to hang over US equity markets.<\/p>\n

Bottom Line<\/p>\n

Given the historical September volatility, the \u201csell the news\u201d psychology surrounding the interest rate cut and AI hype, and the ongoing legal uncertainty of tariffs, an end-of-month correction may loom.<\/p>\n","protected":false},"excerpt":{"rendered":"September Market Seasonality The month of September is historically one of the worst times to be a bull.…\n","protected":false},"author":2,"featured_media":135120,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[45,49,48,2517,2518,1829,2512,2513,100,2515,2516,2514,2519,2520,2511,121,2521,176],"class_list":{"0":"post-135119","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-ca","10":"tag-canada","11":"tag-financial","12":"tag-financial-planning","13":"tag-investing","14":"tag-investment","15":"tag-investment-advice","16":"tag-markets","17":"tag-online-investment","18":"tag-online-stock-trading","19":"tag-online-trading","20":"tag-quote","21":"tag-quotes","22":"tag-stock","23":"tag-stock-market","24":"tag-stock-quotes","25":"tag-stocks"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/135119","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=135119"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/135119\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/135120"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=135119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=135119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=135119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}