For much of the post-COVID period, equity markets have been largely driven by strong returns from massive companies collectively dubbed ‘The Magnificent Seven,’ thanks to their excellent performance.

However, since Nvidia’s recent annual results came in below some market expectations, this sector has struggled. Due to its scale and importance to the US market, this has brought down other indices, causing the S&P 500 and NASDAQ to struggle.

Peter McLoughlin, Head of Research at Rowan Dartington, notes that September has historically not been a favourable month for the tech sector.

He also points out that, beneath the headline Index figures, we’re witnessing a gradual shift in market leadership, with financial, industrial and real estate investment trusts (often called REITs) performing better.

Peter suggests: “The outperformance of equal-weighted indices compared to their market cap-weighted counterparts is a trend gaining momentum and deserves close attention. Simultaneously, the Russell 2000 is posting robust advances. These undercurrents suggest tectonic shifts in market leadership are underway, a development that aligns with the concerns about market concentration effects.”

The US market is generally facing a number of uncertainties in the final months of the year. The election is now less than two months away and, at the time of writing, neither party could claim to be runaway favourites. The coming week will see Presidential candidates, Kamala Harris and Donald Trump take part in their first debate, which political experts and economists will be watching for any clues for the future.

Later this month, the US Federal Reserve is expected to reduce interest rates between 0.25% and 0.50% for the first time since the end of the pandemic. Although all signs point to a drop in interest rates, there are still questions around the pace of the fall , and where they will settle.

One of the figures affecting this question is the US job market. Weaker job market data at the end of July helped spur the temporary market drop at the start of August. There wasn’t such a dramatic reaction to figures released last week though. These showed unemployment fall slightly, and average earnings grow, however payroll data was weaker than expected.

Investors in the UK market also have some notable pieces of information to keep an eye on in the coming months . The Bank of England’s (BoE) Monetary Policy Committee is due to meet next week to discuss interest rates. The BoE has already cut rates once, however like the US, the questions now being asked are how fast and how far will future cuts be.

Following this, Labour’s inaugural Budget is due in October. Keir Starmer’s government has been laying the political groundwork for some tough decisions, so a number of tax rises or spending cuts are expected.

Turning to mainland Europe, Germany was rocked by news that Volkswagen could close some of its German factories as part of its cost cutting plans. German manufacturing has been struggling in recent years, partly driven by higher energy prices.

Mark Dowding, Chief Investment Officer at BlueBay, notes: “With Germany paying six times as much for its energy compared to its industrial competitors, it is no small wonder that the economy continues to struggle. VW’s move to shutter German production highlights policy failure, in the pursuit of an environmental agenda which feels poorly conceived. It remains ironic to observe how German dependency on dirty coal has resulted from a national rejection of nuclear, and there is a sense that an institutional rethink may be required.”

Finally, there was some political resolution in France last week, after President Macron selected Michel Barnier as the next Prime Minister. Barnier was famously involved in the Brexit negotiations following the 2016 referendum and will need to walk another careful tightrope now, as he faces a fractured Parliament, with no one part holding a clear majority.

Accountants, lawyers and other professional-services specialists need high-quality financial advice, just like their peers in other disciplines. But that advice may need to incorporate an extra dimension, as the financial decisions you make must not be allowed to compromise your professional integrity.

“The level of scrutiny you face as someone working in professional services may be significantly higher, you need financial advice that ensures the decisions you take can stand up to that scrutiny; otherwise, you’re at risk of reputational damage, professional sanction or even criminal prosecution.”

Conflicts of interest are a good example of the potential danger. The work you do with a corporate client, say, could give rise to a conflict if you also have exposure to the client through your personal finances – perhaps because you’ve invested in the business.

Insider trading could be an even more serious problem. As a professional adviser to a business, you’ll very often have access to sensitive information that could affect its value. If you trade in the shares of that business before this information becomes public, you’re potentially committing a criminal offence.

Tax planning is another area that can be difficult. HMRC has taken an increasingly tough line on tax avoidance in recent years – and while a dispute with the tax authorities could be risky and costly for anyone, the consequences for those working in professional services are potentially even more serious. At the very least, your reputation for professional integrity is at risk if a dispute becomes public – and worse still, it could lead to some form of censure from your regulatory body.

If you’re involved in running your own business – perhaps as a partner in a law firm or accountancy practice – you need financial advice that reflects this. There’s a good chance, for example, that your income will be more variable than that of someone who works as an employee, perhaps because you receive payment through dividends, bonuses or partnership distributions. As a result, you may have particular tax-planning needs that – as mentioned above – will require caution.

The levels and bases of taxation, and reliefs from taxation, can change at any time and are generally dependent on individual circumstances.

“All political forces will have to be respected and listened to, and I mean all.”

New French Prime Minister Michel Barnier on his new role.