How Black Friday and Thanksgiving affect the stock market
Although this appears to be untrue, investors may still be curious how Black Friday and Thanksgiving affect the overall stock market. In general, the impact of these two days is modest, but there are some changes you should be aware of.
Thanksgiving and Black Friday trading hours
- Thanksgiving Day: Closed market.
- Black Friday: Shortened trading day, early closure.
- Cyber Monday: Normal trading hours resume.
Market trends during Thanksgiving week
- Reduced trading volume: A decline in activity pre-Thanksgiving.
- Modest gains: Historical uptick in S&P 500 performance.
Black Friday and Cyber Monday’s market impact
- Black Friday: Significantly lower trading volumes.
- Cyber Monday: Normal trading, but with slight performance decline.
- Consumer spending insights: Reflecting economic sentiment.
Investment strategies during the holiday season
- Maintain regular contributions: Emphasizing the importance of consistency.
- Diversify your portfolio: Broadening investment scope for stability.
- Long-term perspective: Focusing beyond immediate market shifts.
- Expect shifts in trading patterns during Thanksgiving week.
- Use spending data for insights but within a broader market context.
- Prioritize a consistent, diversified investment approach for long-term benefits.