U.S. stocks have hit another trade-induced summer storm.

The S&P 500 Index fell 3% on Monday, its worst day since December 2018. The index is now about 6% from record highs in U.S. stocks’ worst bout of volatility since May.

As shown in the LPL Chart of the Day, Storms Happen Often in U.S. Stocks, stock volatility this year has been relatively subdued compared to history. The S&P 500 has declined an average of 14% from peak to trough since 1990, and even in positive years, the index has dropped an average of 11% during the year.

“Though the volatility has been uncomforta

August has been one of the worst months for the stock market historically. In fact, it has been the worst month on average for the past 10 years, with the S&P 500 Index down an average of 0.78% for that month [Figure 1]. Last week’s 3.1% slide for the index certainly fit that pattern, which begs the question whether investors should buckle up for more seasonal losses this month. Despite last week’s losses, 2019 has been a good year for stocks — the S&P 500 is up 17% year to date through August 2 and, excluding any losses Monday, still stands just 3% from its all-time closing high on July 26. Here we summarize August&

The Federal Reserve (Fed) completed its U-turn in policy last week. Policymakers announced a 25-basis point (0.25%) rate cut July 31, its first in 10 years [Figure 1].

Rate cuts have been a sobering reality in investors’ short-term memories, as the Fed resorted to a series of rate cuts to get the U.S. economy out of the depths of the financial crisis in 2008–09. The economy is much different now—in strength and in structure—so it has been difficult for investors to understand the Fed’s intentions in this decision.

Fed Chair Jerome Powell’s post-meeting comments made i

U.S. monetary policy has taken another U-turn.

The Federal Reserve (Fed) announced a 25-basis point (0.25%) rate reduction July 31. As shown in the LPL Chart of the Day, The Federal Reserve’s First Rate Cut in 10 Years, the rate cut was the first since the 2008 Financial Crisis. The Fed also said it would end its asset sales on August 1, instead of in October, in order to align its balance sheet and rate policies.

Rate cuts have been a sobering reality in investors’ short-term memories, as the Fed resorted to a series of deep rate cuts to get the U.S. economy out of recession 10 years ago. I