Midterm Summers Hint at Weak Seasonality for Stocks, Yet This Year Feels Different

TL;DR
Historically, summer in midterm years has been a weak stretch for equities (the S&P 500 has averaged a roughly 2.8% loss from end-April to end-September). This year started May with gains, but analysts warn volatility remains elevated (VIX around 16.7%), and the political backdrop—likely a divided Congress—could limit policy shocks. The market may move sideways to choppily, with outcomes still influenced by inflation and Federal Reserve policy.
Topics:businessmarkets#divided-government#markets#midterm-elections#sandp-500#stock-market-seasonality#vix
- Stocks tend to sink during the summer before midterm elections. Will history repeat itself? MarketWatch
- Dow adds nearly 300 points Friday for new record close; S&P 500 notches eighth winning week: Live updates CNBC
- Iran Progress Seen Amid Market Bets; 6 Stocks Near Buy Points Investor's Business Daily
- S&P 500 Bulls Power Longest Weekly Gain Since 2023: Markets Wrap Bloomberg.com
- Stock Market News, May 22, 2026: S&P 500 Clinches Longest Weekly Winning Streak Since 2023 WSJ
Want the full story? Read the original reporting
Read on MarketWatch