How often does the S&P 500 finish October higher?

Market Performance Overview - The stock market has seen a significant increase of over 35% since the tariff-induced sell-off in April, raising questions about the continuation of this trend in October [1] - Historically, October has been known for dramatic sell-offs, with notable declines such as a 20.5% drop in the S&P 500 on October 19, 1987, and a 16% decline in October 2008 during the Great Recession [2] Historical October Returns - The S&P 500 has finished higher in October 59% of the time since 1950, with an average return of 0.9%, ranking it as the 7th best month for returns [5] - Recent October returns for the S&P 500 over the past five years show mixed performance, with 2024 at -0.99%, 2023 at -2.20%, 2022 at 7.99%, 2021 at 6.91%, and 2020 at -2.77% [6] Comparison with Other Months - October's returns are relatively modest compared to November, which has historically been the best month for the market, with gains 69% of the time and an average return of 1.9% [7] - Despite the potential for October declines, historical trends suggest that subsequent months like November, December, and January typically yield strong returns, leading many to view October dips as buying opportunities [7] Valuation Concerns - Current market conditions indicate that the S&P 500 may be overvalued, with a price-to-earnings (P/E) ratio of 22.8, a level that has historically been associated with lackluster returns [8]