EDITOR'S NOTE
Stocks eked out a gain in September despite a storm of escalated trade headlines and impeachment fears throughout the month. But if history is any indication, October could be a different story.
The upcoming month has historically been the most volatile as Wall Street's so-called fear index, the Cboe Volatility Index, tends to peak in October. The VIX, as it's also called, is known to jump more than 21 points on average in the month over the past three decades, according to Macro Risk Advisors. In that time frame, more than 190 S&P 500 companies have seen a daily move of more than 1% in October — the most of any given month, Macro Risk Advisors said.
The market's surprising resilience in September — typically the worst month for stocks — could also signal the rally is about to lose steam, CNBC's Yun Li writes. As Ryan Detrick, senior market strategist at LPL Financial, tells Li, "we've been spoiled" by the lack of volatility this month and that increases the chances of "a little more explosive" October. "One thing we know is the markets don't stay calm forever and we've seen that multiple times this year," he says.
There have been plenty of catalysts lately to cause whiplash in the markets: trade talks, fears around third-quarter earnings reports and President Donald Trump's impeachment saga. The trade tensions are likely to remain a key investor concern unless we get a peaceful resolution when both sides meet Oct. 10 in Washington. TOP NEWS
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