{
  "id": 15041604,
  "title": "Inflation Rose to 3.7% in September. Is It Time to Sell the S&P 500?",
  "url": "https://urgent.news/2026/10/16/inflation-rose-to-3-7-in-september-is-it-time-to-sell-the-s-p-500",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-16T20:47:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/10/16/inflation-rose-to-3-7-in-september-is-it-time-to-sell-the-s-and-p-500/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "Inflation skyrocketed to 3.7% in September, leading investors to question whether it's time to sell the S&P 500. However, examining historical data reveals that high inflation hasn't always been detrimental to the index. After analyzing 908 months since 1950, it was found that 69% of months with inflation at 3.5% or higher saw the S&P 500 rise over the next year, with an average gain of roughly 7%. Conversely, months with inflation below 3% saw the index close higher in 79% of cases, with an average gain of about 11%. Even when inflation was at the lower end of the \"hot\" range (3.5% to 5%), 70% of the time, the index still closed higher the following year, with an average gain of around 7%. The analysis also revealed that high inflation was more prevalent during the 1970s and 1980s, a period when inflation routinely exceeded 14%. Additionally, the impact of inflation on the S&P 500 varied depending on the timing within the inflation surge. For instance, inflation exceeding 3.5% in the spring of 2021 preceded a lower index a year later, but readings around the June 2022 peak of 9% led to gains. This highlights the challenge of predicting a single reading's impact. Higher inflation can also lead to elevated interest rates, negatively affecting stock valuations. However, for long-term investors, the historical data suggests that a 3.7% inflation reading is not a strong reason to sell an index fund, as the index still outperformed in about two-thirds of the cases a year later, with an average gain still being a gain.",
  "summary": "Should S&P 500 index fund owners change anything with inflation so hot?",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "Nasdaq Markets",
        "title": "Inflation Rose to 3.7% in September. Is It Time to Sell the S&P 500?",
        "url": "https://urgent.news/2026/10/16/inflation-rose-to-3-7-in-september-is-it-time-to-sell-the-s-p-500-15049832",
        "published": "2026-10-16T21:07:02.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}