September was a rough month for the stock market, but one market sector weathered the storm.
All three major U.S. indexes closed out last month on a down note — which isn’t nearly as bad as it might seem, considering the strong bull run stocks have been on.
But I want to dig deeper.
It’s easy to suggest that because the S&P 500, Dow Jones Industrial Average and Nasdaq Composite were down in September — and even into the beginning of October — that it spells bad news for stocks across the board.
However, my research found that was not the case.
In this episode of The Bull & The Bear, I’ll tell you about one sector that has left the rest of the market in the dust all year long. Plus, I’ll explain the best way to play this potential trend moving forward.
Market Drops in September, But One Sector Stands Tall
After the longest bull market run in history, we can expect that there will be times when the market reverses course.
But the recent market drop dominated headlines because of higher volatility.
Looking at the performance of the S&P 500 from Sept. 1 to Oct. 12, the drop is noticeable.
S&P 500 Index Drops Nearly 4% Since September 2021
The highest point of the index since the start of September happened on the second day of the month — when the index hit 4,536.95.
A month later, the S&P 500 fell to 4,300.46. It rebounded and then sat at around 4,350 in the middle of October. And it rallied higher in the last few days.
One sector in the S&P 500 dominated the period and has outperformed over the year. Listen to The Bull & The Bear to find out how to play it.
The Bull & The Bear
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Matt Clark, CMSA®
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He is a certified Capital Markets & Securities Analyst with the Corporate Finance Institute and a contributor to Seeking Alpha. Prior to joining Money & Markets, he was a journalist and editor for 25 years, covering college sports, business and politics.