Weekly Market Insight
Welcome to our weekly market update. This newsletter is designed to provide you with current market data, investment insights, and educational information about market trends and strategies. The content herein represents our observations and analysis of market conditions and is intended for informational and educational purposes only. It does not constitute personalized investment advice or a recommendation for any specific security or strategy.
Major Market Indexes
Closing Price as of 09/02/2026
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Items of Interest
September - Historical Returns
Historically, September has been the single worst-performing month for the S&P 500 Index (SPX), the Dow Jones Industrial Average (.DJIA), and the Nasdaq Composite (NASD) The Stock Trader’s Almanac says, “September is when leaves and stocks tend to fall; on Wall Street, it’s the worst month of all.” Since 1958, September is the only month in which the S&P 500 shows a negative median return. (Source: Stock Trader’s Almanac).
Source: Dorsey Wright & Associates
At Strong Tower, we follow a Relative Strength strategy. We can lean toward carrying a heavier cash allocation than normal heading into the 3rd quarter.
As of this writing, the S&P500 posted a monthly return, in August, of 2.72% and a quarterly S&P500 return of 2.66%. (Source: Raymond James & Associates).
This is also an opportune time to evaluate our positions and “weed” the garden of any underperforming holdings. This allows us to raise our cash allocation in anticipation of lower market prices, in which to deploy funds into the market.
Last 7 Days
Stock Market
August finished strong. Despite recent volatility, the S&P 500 gained about 2.7% in August, while the Nasdaq-100 gained roughly 4.2%, its strongest August performance since 2021. Energy was one of the month’s strongest sectors. (Nasdaq.com)
September has started under pressure. Today the S&P 500 is down roughly 0.7%, the Dow about 0.9%, and the Nasdaq about 1%, with higher oil prices and Treasury yields weighing particularly heavily on growth and technology stocks. (APNews)
Bond yields are becoming a major issue again. The 10-year Treasury yield has climbed to approximately 4.79%, near its highest level since early 2025. Higher yields are increasing borrowing costs and putting pressure on equity valuations. (APNews)
Inflation concerns have returned. Last week’s inflation report came in slightly hotter than economists expected, while rising energy prices are creating another potential inflationary headwind. (WashingtonPost)
Fed expectations have shifted more hawkish. Markets are increasingly considering the possibility of another Fed rate increase rather than expecting easier monetary policy. (APNews)
Oil is a key market driver. Brent crude has moved toward $94/barrel as fighting involving Iran threatens shipping through the Strait of Hormuz. (APNews)
Geopolitics
Iran/Hormuz is the biggest immediate market risk. Renewed U.S.-Iran hostilities have disrupted shipping, and two oil tankers were reportedly struck Monday night. The Strait of Hormuz remains the critical geopolitical pressure point because of its importance to global energy supplies. (CBSNews)
Russia is moving closer to Iran. Vladimir Putin publicly pledged support for Iran this week while meeting Iranian President Masoud Pezeshkian. Moscow, Tehran, and Beijing are increasingly pushing back collectively against U.S. sanctions and Western economic pressure. (WashingtonPost)
China continues supporting economic ties with Iran. Beijing has rejected U.S. secondary-sanctions pressure and indicated it will protect Chinese commercial interests involving Iran. (Lemonde.fr)
Russia-Ukraine remains active. Ukraine has continued striking Russian energy and logistics infrastructure while diplomatic pressure for negotiations continues. (NewsSquawk.com)
Bottom Line for Investors:
The four things to monitor:
Oil above $90 a barrel increases inflation risk.
10-year Treasury rates that approach 4.8% can be a meaningful headwind for equities.
Federal Reserve discussions are shifting back toward considering another hike.
Iran/Hormuz escalation could further restrict oil shipments and would likely mean higher energy prices, higher inflation, higher yields, and increased volatility in the equity markets.
Investment takeaway:
August’s strong performance shows that underlying equity momentum hasn’t disappeared, but the combination of rising yields, rising oil prices and geopolitical uncertainty, makes an argument for paying much closer attention to market leadership, overall breadth and relative strength as September begins.
Current Strong Tower Model Allocation
Clients Only — Allocation as of 09/01/2026
Bottom Line:
64.00% of our model is currently in the top 4 Industry Groups.
83.00% of our model is currently in the top 8 Industry Groups.
About Us
At Strong Tower Wealth Management, we offer comprehensive wealth management services using a goal-focused and holistic approach that considers each client’s overall financial situation, including their family, circumstances, and objectives. Our services include investment management, insurance planning, and estate planning coordination, provided with an emphasis on clarity and transparency.
Not a client yet? We invite you to schedule an introductory assessment with Brett to discuss your financial goals and learn more about how we can support you.
Brett Lewis
Founder / Managing Director
Strong Tower Wealth Management
www.strongtowerwealthmanagement.com