TechFlow news, August 31 — According to Jinshi Data, U.S. stock markets will enter a critical period in the coming weeks that could determine whether the latest rally can continue. Employment data, key inflation indicators, and the Federal Reserve's interest rate decision will all be released within the next 14 trading days, setting the tone for investors. The market currently appears at a crossroads: the S&P 500 has just recorded its weakest monthly gain since March, while September is historically its worst-performing month. At the same time, market volatility has nearly disappeared. The VIX fear index has only once touched the key level of 20 since the end of June.
"It’s correct for investors to remain cautious in September," said Tom Lee, research head at Fundstrat Global Advisors. "With the Fed restarting a modest easing cycle after a long pause, traders are finding it difficult to position themselves." The long-term bullish analyst expects the S&P 500 to decline 5% to 10% this fall before rebounding to between 6,800 and 7,000.
