Major US stock indices finished higher, with the NASDAQ showing the biggest gain. The S&P and Dow also set new closing records. The NASDAQ closed just 8 points below its all-time high at 21705.16. **Dow and S&P Performance** The Dow industrial average rose by 71.67 points, or 0.16%, reaching 45636.90. The S&P index climbed 20.46 points, or 0.32%, finishing at 6501.86. The NASDAQ index increased by 115.02 points, or 0.53%, closing at 21705.16. This month, all key indices have improved, led by the Dow with a 3.41% increase. The S&P rose by 2.56%, while the NASDAQ gained 2.76%. In August, three of the “Magnificent 7” stocks saw declines, but Tesla was not among them. Tesla led with a 12.23% increase, followed by Apple, which rose 2.76%, and Nvidia, which edged up 1.26%. Amazon fell by 1.07%, while Meta and Microsoft dropped 2.89% and 4.47%, respectively. Google posted a strong gain of 10.29%. With the NASDAQ so close to its high, we’re watching for either a breakout or a pullback at this critical level. Traders may want to consider strategies to profit from a significant move in either direction as the market determines its next step. The upcoming long weekend adds some uncertainty, making short-term options on the QQQ ETF appealing. **Market Complacency and Volatility** Implied volatility is currently near its lowest levels since late 2024, with the VIX around 13. This indicates a strong sense of complacency in the market, which makes buying options relatively inexpensive. Now might be a good time to buy downside protection, such as put options on the S&P 500, to guard against a sudden downturn. September has historically been the weakest month for stocks, a trend that has been evident in more than half of the years since 1950. As we wrap up a strong August, it’s wise to be cautious of this seasonal risk. Based on this history, trimming some call positions or setting up bearish put spreads could be a smart strategy. Not all stocks are benefiting equally; the performance of major stocks has been mixed this month. While Tesla and Google have surged, names like Microsoft have underperformed. This might be a signal to focus on individual stock derivatives instead of just broad index futures, perhaps by selling covered calls on the laggards. Next week, all eyes will be on the August jobs report, which could be a significant catalyst for the market. A strong report could help the NASDAQ reach new highs, while a weak report could lead to a sell-off, aligning with the seasonal trends. Create your live VT Markets account and start trading now.

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