On Monday, September 2, Nasdaq (QQQ) led the stock decline in the morning. Fortunately, the tech-heavy index, S&P 500 (SPY), Dow Jones, and Russell 2000 (IWM) erased some of the selling pressure by the end of the day.
Will September bring a sell-off? Investors may look at seasonal trading patterns for the month to determine that markets will drop. For 2025, strong year-to-date performance might worsen this month’s performance.
The S&P 500 gained 9.25%. However, non-U.S. performed even better. Vietnam (VNM) is up by 58%, Mexico (EWW) is up by 34%, and Canada (EWC) is up by nearly 21%. The ex-U.S. markets benefited from the U.S. dollar losing as much as 10%. YTD, the US Dollar Index Bullish Fund (UUP) lost 6.4%. If it continues to weaken, EWW, VNM, and EWC ETFs should hold on to their gains.
Tariff Uncertainty
Last week, the Appeals court ruled that tariffs are illegal. The courts did not end the tariffs. Instead, it will let the Trump Administration appeal the decision. That would shift the final ruling to the Supreme Court.
The government has already collected $142 billion in tariffs. If SCOTUS rules its illegality, business owners and importers should get those funds back. It would help the economy by allowing suppliers to cut prices. That would spur demand.
