US Stocks Slip as S&P 500 Tests Bottom of Bullish Channel

US stocks have seen a decline in September as the S&P 500 tests the bottom of its bullish trading channel, according to Bespoke Investment Group. The index was down 0.3% on Tuesday, hovering around 4,441. This decline comes ahead of the Federal Reserve’s two-day policy meeting, which is set to conclude on Wednesday.

Bespoke Investment Group notes that the S&P 500 is currently at the bottom of its uptrend channel and below its 50-day moving average. This suggests a potential shift in the market trend. Additionally, BofA Global Research highlights that historically, the last 10 days of September have been the weakest for the S&P 500.

Despite the recent decline, the S&P 500 has still experienced gains of over 15% year-to-date. However, there are signs of weakness in certain sectors such as consumer staples and healthcare. On the other hand, energy and financials, particularly insurance stocks, have shown strength.

Notably, the energy sector has seen an increase of more than 3% in September, largely driven by higher oil prices. This rise in oil prices has contributed to inflationary pressures, with the consumer-price index rising 0.6% in August.

Investors are eagerly awaiting the conclusion of the Federal Reserve’s policy meeting and Fed Chair Jerome Powell’s press conference. They will be looking for insights into the central bank’s stance on interest rates and their efforts to control inflation.

Sources: Bespoke Investment Group, BofA Global Research, FactSet data