“September is Seasonally Weak” – Jim Cramer Predicts Bumpy Markets Ahead

Pooja Khardia
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Jim Cramer talking about September crash

Highlights

  • Jim Cramer warns that September is historically the weakest month for markets, calling it seasonally weak.
  • Fed rate cuts, inflation data, and a tough labor print could stir market volatility.
  • Despite the risks, Cramer notes that Trump’s presidency could defy seasonality.

August has not been very favorable for the market, which Jim Cramer has already anticipated, citing historical records. However, now as September begins, investors have optimistic hopes, especially around the FOMC Meeting time, but Cramer leaves a serious warning, adding that “September Is Seasonally Weak.”

Jim Cramer Predicts Bumpy Market Due to Macroeconomic Factors

In an X post, Mad Money show host Jim Cramer has left an indirect prediction for investors, asking them to anticipate volatility ahead. He openly adds that September is seasonally weak, and historically, this month is considered the weakest for U.S. equities.

Jim Cramer X pots suggesting that volatility may remain high in September
Source: X, Jim Cramer

Even analysts call it the post-summer portfolio rebalancing and similar names, suggesting that it’s not a new trend. Since 1950, the S&P 500 has seen more negative returns in September compared to others, earning the nickname “the September Effect.”

Notably, this prediction also works for the crypto market, since the Bitcoin price has also declined this month historically. With his X post, Cramer has presented a look into the history and has reminded investors of the volatility, especially as inflation numbers and a tough Labor number may bring turbulence.

Jim Cramer Unveils Top 2 Factors for Bumpy Market

The U.S. The Fed’s decision on the interest rate cut is a major factor that always impacts the financial markets. The prime example is the multiple crypto market crashes in August due to the Fed’s unchanged rate decision in July, followed by various macroeconomic events like PCE, which could affect their upcoming decision.

Today, the CME FedWatch data shows almost 90% chances of interest rate cuts in September, which is why the financial market is up. It includes Gold and Bitcoin price rallies; however, the upcoming inflation data and labor market numbers can make or break it.

CME FedWatch shows 89.8% odds of interest rate cuts
Source: CME FedWatch

Interestingly, Jim Cramer agrees with the same, as he added that these two macroeconomic factors can stir the volatility. Inflation data is important because the Fed will consistently consider consumer prices for its decisions. If there’s any upside in inflation, it could delay rate cuts, affecting the crypto and stock market.

Secondly, a “tough” labor print is also concerning as it could create concerns around the economy’s underlying strength. Overall, Cramer believes that these two data points will drive the Fed’s next move and the performance of financial markets.

However, he also added that Trump’s presidency can defy the seasonality, as the administration’s actions and support for the market could decrease the volatility.

“We have some inflation numbers and a potentially tough Labor number. But this presidency can defy any seasonality so I wouldn’t bet on the calendar.”

Ultimately, he is suggesting investors exercise caution; however, he is also urging them not to assume that September will certainly crash.

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Frequently Asked Questions (FAQs)

1. What does Jim Cramer have to say about September?

Jim Cramer called September the “seasonally weak” month based on historical trends.

2. Why September could be bearish?

Due to various macro data releases this month and their impact on the Fed’s interest rate decision, September could turn bearish.

3. What macroeconomic factors should investors watch out for?

Inflation data and the Labor report could bring volatility to the market, so investors must watch out for them.
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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Pooja Khardia is a seasoned crypto content writer with 6+ years of experience in writing, including in blockchain, cryptocurrency, DeFi, and digital finance reporting. In her adventure journey, she is currently working with CoinGape Media and leading their Trending Section. Here, she uses her expertise to deliver analytics, market insights, price predictions, and information on what’s trending in the crypto space, aiming to keep the crypto and web3 community updated with market trends and important insights. Known for a user-centric and straightforward writing style, Pooja is passionate about making crypto easy and accessible. Her writing blends market research with storytelling, helping readers stay ahead in a fast-paced industry. When not behind the keyboard, Pooja embraces her creative side through drawing and crafting. Connect with Pooja on LinkedIn or X.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.