Stocks Tick Higher, Building on August’s Gains

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The S&P 500 hovered near a record to start the month, building on strong gains from August and its longest winning streak since January 2018.

The S&P 500 added around 0.2% in morning trading. The benchmark stock index has climbed for seven consecutive months and closed Tuesday slightly below its all-time high.

The tech-heavy Nasdaq Composite added 0.6% and headed toward a record. The Dow Jones Industrial Average was little changed.

Stocks have risen over the summer, buoyed by expectations that the economic recovery would enable corporate profits to keep expanding. Investors are broadly optimistic that shares will continue to eke out gains. However, some money managers caution that markets are likely to become more volatile in the fall, pointing to catalysts including the curtailment of stimulus programs by the Federal Reserve.

“September can be quite a challenging month for risk assets,” said Suzanne Hutchins, head of real return investments at Newton Investment Management. “Markets are pretty high across the board, valuations are pretty rich.”