As stock prices fall, investors prepare for an autumn chill

Investors returning from summer holidays might feel dispirited upon checking their portfolios. Stocks have had a poor start to September. America’s S&P 500 index dropped by 2% on its first day of trading. European shares followed suit on September 4th and those in Japan have fallen by even more. It is a striking change from the calm that had settled over markets before Labour Day. American share prices ended August less than a hundredth of a percentage point below an all-time high reached in July, European ones fared similarly and Japanese stocks were just a few percentage points below their peak. Adding to the good vibes, rich-world inflation had continued to cool, setting the scene for the Federal Reserve to begin cutting interest rates when its policymakers next meet on September 17th and 18th.

This article appeared in the Finance & economics section of the print edition under the headline “Seasons change”

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