Traders focus on data, elections, and earnings after Fed rate cut

The Federal Reserve’s decision to cut rates by 50 basis points sent the benchmark S&P 500 to its first closing all-time high in two months. So far, the index has gained in September, a month historically known for weaker performance in equities. The S&P 500 has delivered strong returns, but traders should remain cautious as the rocky period could last until U.S. presidential election.

Volatility tends to rise in election years, and this year is no exception. The Market Volatility Index (VIX) typically climbs at the start during election periods. Traders should prepare for potential fluctuations as the U.S. election draws closer. With polls showing a tight race between Republican Donald Trump and Democrat Kamala Harris, market participants are already feeling the pressure.

Read more to find out how will S&P 500 index trend here.