LIVE MARKETS-September seasonality suggests tougher stretch for U.S. stocks, BofA says

This seasonal profile argues for "a more tempered outlook for equity upside" and "possibly a defensive posture" such as trimming or hedging equity exposure ahead of a period that has historically been prone to corrections, analysts said.

However, they added that November and December have typically delivered stronger returns, suggesting any near-term weakness could present a buying opportunity if supported by technical indicators.

Dow gains ~0.2%, S&P 500 dips, Nasdaq off ~0.4%

Energy weakest S&P 500 sector; Comm Svcs leads gainers

Dollar rises; gold up ~1%; bitcoin up ~2%; US crude down >2%

US 10-year Treasury yield falls to ~4.70%

For the S&P 500 .SPX, two historical trends suggest caution. Firstly, when the first half of August was strong, data shows a weak September followed. The index gained 3.95% during the first 10 trading days of August, a rise matched only five times since 1950. In each prior instance, September ended lower, with an average decline of 3.43%, said BofA analysts led by Paul Ciana.

Secondly, September and October have historically been the weakest consecutive two-month period for U.S. stocks, with weaker S&P 500 returns and larger corrections compared to other two-month periods.

Since 1928, the S&P 500 has fallen about 57% of the time during this period, posting an average decline of 0.56%, while experiencing some of its largest corrections, the analysts said.