John Luke Tyner an analyst at Aptus Capital Advisors stated that such a significant move is rare unless there is clear economic vulnerability or market panic.

We haven t reached that point yet. Typically the stock market performs poorly in September. The most recent occurrence of the S P 500 increasing in September was in 2019.This week s slide represents the index s biggest drop since September of last year. Oil prices also saw a significant decline this week signaling economic pessimism.

Brent crude hit its lowest level of the year around $71 per barrel on Friday. Economist Lauren Goodwin from New York Life Investments anticipated a smaller quarter point rate cut from the Fed this month.

She expressed concern that a larger cut could unsettle the market without strong economic data indicating a looming downturn.

Goodwin emphasized that the market poses the biggest risk to the economy a key concern for the Fed.

Due to uncertain economic prospects investors are feeling anxious. Stocks had consistently increased in value during the first part of the year resulting in many investors making significant profits.

The S P 500 reached its highest point in July registering an increase of more than 18 percent for the year.

Despite the recent decrease in value the index is still around 13 percent higher for the year. Investors seem hesitant to give up their earlier gains believing that the market may continue to rise slightly.

A survey conducted in August by Bank of America revealed that most fund managers anticipate economic growth as the Federal Reserve reduces interest rates but they are also greatly concerned about potential mistakes by the central bank.