S&P 500 Drops 1.3% in September as Yields Rise

The S&P 500 is down 1.3% in September. The index has lost over 100 points since the start of the month. This decline occurs despite an 11% gain since the start of 2026.

Investors face pressure from war, inflation, and rising Treasury yields. The index remains up 15% from last year. The current pullback fits a broader pattern of market volatility.

Historical data shows frequent drawdowns

Market corrections are routine events. Since 1957, the S&P 500 has seen 60 drawdowns of 5% or more. Twenty-two of these corrections reached 10%. Ten declined by at least 20%.

Since 1929, the index has experienced 56 corrections. The average correction lasts 115 days. The average annual return since 1928 is 10%.

Waiting to buy often misses gains

Timing the market rarely works. Research from Hartford Funds indicates a key risk. Three-quarters of the best trading days occur during bear markets. The rest happen within two months of a new bull market.

Selling now to buy lower is difficult. Markets often recover before investors feel safe. Discipline beats speculation for long-term holders. A $10,000 investment in 1957 is worth $1.6 million today.

Context from GN auto markets

GN auto markets/indices: stock index data confirms the trend. The S&P 500 remains the benchmark for US equity performance. The current 1.3% drop is a minor blip in the long-term data. Investors should focus on multi-year horizons.