September historically has been the biggest loser for the Dow and S&P in the last 52 years, according to the Stock Trader's Almanac, in part because companies often reduce spending toward the end of the year and fund managers reshuffle their portfolios at the quarter's end.
And rising interest rates threaten to choke off consumer spending, which accounts for two-thirds of the nation's economic activity, and dampen the booming housing market, one of the economy's few bright spots during the recession.
Not all analysts are bearish, however.
Steven Goldman, chief market strategist, Weeden & Co in Greenwich, Connecticut, said the recent gains might seem extraordinary but actually are quite typical given the market's sharp declines during the three-year bear market.
Coming of the bull?
Since the market rally began in mid-March, the Dow has gained 26 percent, the NASDAQ has climbed 46 percent and the S&P has advanced about 28 percent.
"Bull markets tend to move in this magnitude when foreshadowing greater-than-expected economic news ... and market declines tend to stay shallow in the first few months," he said. "The market should hold up well."
The Dow ended the week up 87.52, or 0.9 percent, closing Friday at 9,503.34.
The NASDAQ had a weekly gain of 47.79, or 2.6 percent, closing at 1,858.24 Friday. The S&P rose 13.38, or 1.3 percent, for the week, closing at 1,021.39.
For the week, the Russell 2000, the barometer of smaller company stocks, advanced 11.45, or 2.3 percent, closing at 508.87.
The Wilshire 5000 Total Market Index, which tracks more than 5,700 US-based companies, ended the week at 9,906.69, up 136.13 from the previous week. A year ago, the index was at 8,481.20.
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