Almanac Trader

Over the last 53 years June has shone brighter on NASDAQ stocks as a rule ranking seventh best with a 0.9% average gain, up 30 of 53 years (since 1971). This contributes to NASDAQ’s “Best Eight Months” which ends in June. June ranks near the bottom on the Dow Jones Industrials just above September since 1950 with an average loss of 0.2%. S&P 500 performs similarly poorly, ranking ninth, but with an 0.1% average gain. 

Small caps have tended to fare well in June. Russell 2000 has averaged 0.8% in the month since 1979 advancing 64.4% of the time. During the bear market in 2022, Russell 1000 and 2000 suffered their worst June losses ever, dropping 8.5% and 8.4% respectively. S&P 500 and NASDAQ also dropped over 8% that year.

June is the #5 DJIA month in election years averaging a 0.9% gain with a record of thirteen advances in eighteen years. For S&P 500, June is #3 with an average gain of 1.3% (15-3 record). Election-year June ranks #3 for NASDAQ and #5 for Russell 2000 with average gains of 1.9% and 1.6% respectively. This performance improvement is most likely the result of the presidential candidate field being sufficiently narrowed (in past election years), and the ultimate nominees being identified.