Financial stock market graph. Selective focus.

The S&P 500 (SP500) slumped 9.34% for September, final figures show, with the index posting a six-session and three-week losing streak in the month. The SPDR S&P 500 Trust ETF (NYSEARCA:SPY) fell 9.62% alongside it, with the ETF now down 24.80% YTD and on track for its poorest yearly showing since 2008.

The benchmark index ends September deep in bear market territory, having lost 25.25% from its record closing high in early January. In a month of volatile trading, it initially climbed more than 4% in the first two weeks before market participants recalibrated their holdings, with the selling becoming especially heavy in the next two weeks. The index hit a yearly low on Friday.

The U.S. Federal Reserve’s fifth straight rate hike last week has signaled to investors that the central bank is committed to its aggressive fight against inflation, even at the cost of hurting the economy. An upheaval in bond markets and a strengthening U.S. dollar has also weighed on sentiment.

There seems to be little respite for investors going forward, with analysts expecting the S&P 500 (SP500) to sink further. Bank of America and RBC Capital Markets believe it could fall to 3,000 points. Goldman Sachs cut its year-end forecast for the index to 3,600 points, and anticipates it to end 2023 at 4,000 points in the case of a soft landing and 3,750 points in the case of a hard one.

Expectations for the upcoming Q3 earnings season have also been tempered, with many expecting a slew of reports highlighting high inflation, supply chain issues and the impact of a strong U.S. dollar.

All 11 sectors in the S&P 500 (SP500) ended in the red for September, with Real Estate the top loser among a pack of five sectors that shed more than 10%. Defensive Health Care stocks fell the least. See below a breakdown of the eleven sectors and their monthly performance. Additionally, see how the accompanying SPDR Select Sector ETF performed from Aug. 31 close to Sept. 30 close.

#1: Health Care -2.74%, and the Health Care Select Sector SPDR ETF (XLV) -2.93%.

#2: Financials -7.93%, and the Financial Select Sector SPDR ETF (XLF) -8.14%.

#3: Consumer Discretionary -8.09%, and the Consumer Discretionary Select Sector SPDR ETF (XLY) -8.40%.

#4: Consumer Staples -8.33%, and the Consumer Staples Select Sector SPDR ETF (XLP) -8.73%.

#5: Materials -9.62%, and the Materials Select Sector SPDR ETF (XLB) -9.81%.

#6: Energy -9.68%, and the Energy Select Sector SPDR ETF (XLE) -10.53%.

#7: Industrials -10.56%, and the Industrial Select Sector SPDR ETF (XLI) -10.86%.

#8: Utilities -11.55%, and the Utilities Select Sector SPDR ETF (XLU) -11.88%.

#9: Information Technology -12.05%, and the Technology Select Sector SPDR ETF (XLK) -12.18%.

#10: Communication Services -12.16%, and the Communication Services Select Sector SPDR Fund (XLC) -11.94%.

#11: Real Estate -13.64%, and the Real Estate Select Sector SPDR ETF (XLRE) -13.96%.

Below is a chart of the eleven sectors’ year-to-date performance and how they have fared against the S&P 500.

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