Markets have experienced a challenging month and quarter, with September being the worst month of the year for the S&P 500 and Nasdaq Composite. Despite this, the three major indexes are still up for the year due to the strength of the early 2023 rally. The Dow saw a 3.5% decline in September and a 2.6% decline for the quarter. The S&P 500 experienced a 4.9% decline in September and a 3.7% decline for the quarter. The Nasdaq Composite had a 5.8% decline in September and a 4.1% decline for the quarter.
Lawmakers were able to pass a continuing resolution, avoiding a government shutdown and providing the market with some relief. The bill allows the government to operate for an additional 45 days, giving legislators more time to finalize funding proposals. This development should be positive for the market, as it provides an opportunity to unwind the selling pressure from the previous week. Jamie Cox, managing partner at Harris Financial, believes that this unwinding of government shutdown selling will have a positive impact on the market.
Stock futures opened higher on Sunday following the temporary agreement to avert a government shutdown. Futures tied to the Dow rose by about 155 points, or 0.5%, while S&P 500 futures added 0.6% and Nasdaq 100 futures climbed 0.8%. This increase in futures suggests a positive start to the new trading month and quarter, offering some optimism after a challenging period for the market.