---
title: "S&P 500 Faces ‘Worst Two Months’ of the Year: Wall Street Strategist Warns Investors to Brace for August and September Volatility"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/294689470.md"
description: "Carson Research strategist Ryan Detrick warns investors to brace for volatility in August and September, historically the S&P 500's 'worst two months,' following consecutive declines in June and July. While noting short-term seasonal headwinds and midterm election jitters, Detrick maintains a bullish long-term outlook, projecting 15-18% gains by year-end 2026 supported by strong corporate earnings and market breadth."
datetime: "2026-08-03T11:46:24.000Z"
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  - [zh-CN](https://longbridge.com/zh-CN/news/294689470.md)
  - [en](https://longbridge.com/en/news/294689470.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/294689470.md)
generator: "portal-rs"
---

# S&P 500 Faces ‘Worst Two Months’ of the Year: Wall Street Strategist Warns Investors to Brace for August and September Volatility

Chief Market Strategist at Carson Research, **Ryan Detrick**, is advising S&P 500 investors to prepare for seasonal headwinds, cautioning that markets should brace for August and September, as they are historically the “worst two months” of the year. The warning follows a rare back-to-back monthly decline for the index in June and July.

## **Historical Red Flags After Summer Drop**

The S&P 500 ended July down 0.1% after dropping 1.1% in June, snapping an 11-year July win streak. According to Carson Investment Research data, consecutive losses in June and July are a “dubious distinction” shared by infamous market years like 1974, 1990, 2001, 2002, and 2008. 

“Prepare to hear a LOT about this from the bears, but down in June and July has been weak for the rest of the year historically,” Detrick noted. When these two months fall, the rest of the year drops more than half the time, posting an average decline of 2.5%.

> July tried, but finished down 0.1%.  
>   
> Prepare to hear a LOT about this from the bears, but down in June and July has been weak for the rest of the year historically. pic.twitter.com/W0GKHoxQWD
> 
> — Ryan Detrick, CMT (@RyanDetrick) July 31, 2026

 **Read Also: Stock Market: Will S&P 500 Open Up or Down Today?** 

## **Seasonal Volatility and Midterm Jitters**

The seasonal calendar adds further reason for vigilance. Detrick highlighted that August and September frequently deliver out-of-the-blue disruptive events that rock global markets, particularly during a midterm election year. 

The recent momentum and semiconductor crash in July may signal that typical midterm volatility has arrived early. Investors are urged to prepare now for potential chop, especially as markets test Federal Reserve leadership.

> August and September are historically the worst two months of the year.  
>   
> Did we get the usual midterm year volatility early this time though with the July momo crash? pic.twitter.com/pe1lezD4Yg
> 
> — Ryan Detrick, CMT (@RyanDetrick) July 31, 2026

## **Long-Term Bullish Outlook Intact**

Despite short-term seasonal risks, Detrick maintains a broader bullish stance for the rest of 2026, expecting S&P 500 gains between 15% and 18% by year-end. –

Solid underlying fundamentals—including strong second-quarter corporate earnings and broad market participation—support the long-term uptrend. The NYSE common stock advance/decline line recently hit an all-time high, proving market breadth remains on firm footing.

Detrick advises investors against panicking during seasonal weakness, pointing to historical strength in the fourth quarter of the presidential cycle as a catalyst for better times ahead.

## **How Have Markets Performed In 2026?**

The S&P 500 index has advanced 9.20% year-to-date. Similarly, the Nasdaq Composite index was up 9.20%, and the Dow Jones gained 8.48%YTD.

The **SPDR S&P 500 ETF Trust** (NYSE:SPY) and **Invesco QQQ Trust ETF** (NASDAQ:QQQ), which track the S&P 500 and Nasdaq 100, respectively, closed higher on Friday. The SPY was up by 0.72% at $747.03, while the QQQ advanced by 0.65% to $687.99.

Meanwhile, the Dow tracker, **State Street SPDR Dow Jones Industrial Average ETF Trust** (NYSE:DIA), closed up 0.54% at $524.32 on Friday.

In premarket on Monday, SPY was up 0.51%, QQQ rose 0.34%, and DIA was up 0.82%.

 **Read Also: DRAM ETF Sinks Nearly 32% as Margin Calls Hit Memory Stock Investors: Charlie Bilello Warns 'That Almost Never Ends Well'** 

***Disclaimer:*** *This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.*

*Image via Shutterstock*

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> **Disclaimer: This article is for reference only and does not constitute any investment advice.**