Here’s how the S&P 500 fares between June and August—and which sectors stand out

Stocks are heading into the summer season on a high note, but the upcoming months are usually not the best on Wall Street. The major averages hit record highs in May, with the S & P 500 breaking above 5,300 for the first time. The Nasdaq Composite on Tuesday surpassed 17,000, while the Dow Jones Industrial Average topped 40,000 earlier in the month. Investor sentiment has been aided by hopes for continued soft inflation data and a robust first-quarter earnings season. It’s not clear, however, whether the market’s May momentum can continue. Historically, the summer months prove to be less robust for the S & P 500. That said, some sectors tend to hold up during that time. Over the past 10 years, the S & P 500 has averaged just a 0.19% increase in June, according to a CNBC Pro analysis of FactSet data. That makes it the third-worst month for the broad market index over that time period. August is even worse, with the benchmark averaging a 0.12% increase — its second worst. July is typically a standout month, however, with the S & P 500 posting a 3.27% increase on average. That’s the biggest one-month increase on average over 10 years. The benchmark also averages a 3.28% and 2.29% increase in July going back 15 and 20 years, respectively. .SPX YTD mountain The S & P 500 has added more than 11% in 2024. Tech and consumer stocks Despite the broader market’s mixed performance during the summer months, investors may want to keep an eye on the tech and consumer discretionary sectors. The S & P 500 tech sector averages a flat performance for June going back a decade. However, July is its best month on average with a 4.85% gain. August, meanwhile, ranks as its sixth-strongest month with a 1.51% advance. Technology stocks have been strong overall in 2024, with the Technology Select Sector SPDR Fund (XLK) adding nearly 12%. This momentum could continue if Nvidia keeps making record highs. Shares are already up more than 125% for the year. Consumer discretionary stocks, meanwhile, average strong performances in June and July with the Consumer Discretionary Select Sector SPDR Fund (XLY) adding 0.52% and 4.52%, respectively. July ranks as the best month overall for the XLY, while June ranks as sixth. August has historically seen the sector hover near the flatline with a 0.29% gain on average for the index’s eighth best month. The top three holdings in the XLY by market cap are Amazon , Tesla and Home Depot , respectively. Perhaps counterintuitively, the summer months are historically weak for the energy sector. The Energy Select Sector SPDR Fund (XLE) typically pulls back in June, July and August with average declines of 0.94%, 0.8% and 1.91%, respectively, going back 10 years. — CNBC’s Christopher Hayes contributed to this report.