Wall St Week Ahead A blazing U.S. stock rally faces market’s toughest month

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The U.S. flag is seen on a building on Wall St. in the financial district in New York, U.S., November 24, 2020. REUTERS/Brendan McDermid

NEW YORK, Aug 27 (Reuters) – A rally in which U.S. stocks have doubled from post-pandemic lows is about to enter the year’s worst month for equities, as investors focus on a nationwide COVID-19 resurgence and how quickly the Federal Reserve plans to pull back on its easy money policies.

September has been the worst month of the year for the S&P 500 (.SPX), with the benchmark index falling an average of 0.56% since 1945, according to Sam Stovall, chief investment strategist at CFRA. The S&P has advanced only 45% of the time in September, the lowest rate of any month, CFRA’s data showed.

This time around, stocks have momentum on their side. The S&P 500 notched its 52nd record closing high of the year on Friday and has gained 20% so far in 2021, having gone 287 calendar days without a pullback of 5% or more.

That type of…

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