S&P 500 hits familiar post-election year slump; this chart suggests more pain ahead

The S&P 500 has slipped over the past four trading days, tracking a familiar late-summer dip in post-election years. 

Carson Investment Research data shows that since 1950, the index typically bottoms by late October before resuming a year-end rally. So far in 2025, the pattern is playing out in line with history.

Fed policy in focus

All eyes now turn to the Federal Reserve’s annual Jackson Hole Economic Symposium, where Fed Chair Jerome Powell will deliver a much-anticipated keynote on Friday. 

Investors  are betting another cut could arrive as early as September, with markets currently pricing in high odds of easing soon. 

Still, Powell faces a delicate balancing act, he must tread between easing signs and stubborn inflation, all amid political pressure over Fed independence.

Analysts say his tone could determine whether this summer weakness ends in a bounce or bleeds into year-end.

Featured image via Shutterstock.