Wall Street desks moved to buy protection as September opened after 27 record S&P closes, citing $1.1 trillion in buybacks that quiet after Sept. 12, VIX at 14.4 and Citadel data showing retail dip buying near half normal pace; historically September averages a −0.6% S&P return since 1950 (higher 34 of 75). CNBC’s Investment Committee plans to hold or add rather than sell, but Bitcoin traded near $77,130 (down >2% in 24h), leaving crypto and DeFi markets vulnerable to seasonality and broader hedging flows despite resilient jobs data (7.3M openings).

Bearish

Predictions Markets

See what traders are focused on

View analytics →

In Brief

Wall Street desks are buying protection as September opens after 27 record closes.
Citadel data shows September has the year's weakest dip buying by retail investors.
All four Investment Committee members plan to hold or add, not sell.

Wall Street’s biggest desks turned defensive as September opened. CNBC’s Investment Committee did the opposite. None of its four members plans to sell.

The split comes as stocks enter the month after 27 record closes this year. September is also the weakest month on the calendar.

Why Wall Street Is Buying Protection

Scott Rubner runs equity and equity derivatives strategy at Citadel Securities and came from Goldman Sachs. His August 31 note made three points.

Earnings are done.

Companies authorized more than $1.1 trillion in buybacks through August. Those buyers go quiet from September 12.

Retail steps back too.

Rubner’s data shows September has the year’s weakest dip buying. Purchases on down days run near half the normal pace.

Hedges are cheap.

The VIX closed August at 14.4, its second lowest finish since December 2025.

“Use strength to reduce some exposure and add inexpensive protection into this event window,” he noted.

Others followed, with JPMorgan’s trading desk moving to neutral. Wells Fargo turned cautious on fears that AI spending has peaked.

Both were far more bullish weeks ago, when JPMorgan raised S&P forecasts as hedging demand dried up.

Why the Committee Is Not Selling

Joe Terranova, Virtus Investment Partners

Momentum fell double digits this quarter while quality rose 1.5%. The market has somewhere to land, he says, so he will not turn bearish yet.

Stephanie Link, Hightower

She is not trying to time the month. Any dip becomes a chance to add to positions she has been building. Value has beaten growth by 14% this year.

Jason Snipe, Odyssey Capital Advisors

He calls himself a long-term investor, not a tactical trader. A soft patch is where he adds exposure.

Josh Brown, Ritholtz Wealth Management

Momentum peaked on June 22 and has fallen 13.7% since. That rotation already happened, he argues. Trading the calendar only creates taxable gains.

The Investment Committee explain how they are setting up their portfolios as we head into September. Source: CNBC

However, the record is milder than the reputation, because since 1950, September has cost the S&P 500 just 0.6% on average. The month still finished higher 34 times out of 75.

The economy is also holding up. Job openings stayed at 7.3 million in July, the Labor Department reported Tuesday.

Job openings rose from 7.18m in June to 7.27m in July, but beneath the surface measures of labor churn ticked lower:Quits rate 2% >> 1.9%Hires rate 3.4% >> 3.2%Layoffs rate 1.1% >> 1.0% pic.twitter.com/TO3qeBMJ15
— Liz Thomas (@LizThomasStrat) September 1, 2026

Bitcoin (BTC) faces the same test. BTC traded near $77,130 on Tuesday, down over 2% over the last 24 hours. Both markets carry a weak September seasonality record.