Analysts warn the S&P 500 Financials sector could pull back in September following a record 13-week winning streak.
The S&P 500 Financials sector extended its rally to 13 consecutive weeks, marking its longest winning streak on record. However, technical strategists caution that the group may face a correction as September approaches, a historically volatile month for markets.
Prior to this streak, the sector had not recorded a 13-week run of gains, with the last comparable period ending in early 2021. The rally has been driven by rising interest rates and strong bank earnings, but seasonal trends and overbought conditions could trigger a reversal.
No immediate market reaction was reported, though traders may begin positioning for a potential pullback in the coming weeks.