The U.S. stock market will be closed on February 19, 2024, in honor of Presidents’ Day. Keep track of all stock market holidays with TipRanks’ Stock Market Holidays calendar.
Will the Holiday Effect Impact the Markets This Week?
Understanding how the stock market might be affected by the holiday season will help you invest well and beat the markets. Investors sometimes refer to pre-holiday market rises and the post-holiday price drift as the “holiday effect.”
The holiday effect is linked to investors’ general optimism and confidence. The fact that customers tend to spend more money around the holidays is another essential explanation for the pre-holiday market surge. The share prices of retailers, in particular, may increase as a result.
A possible reason for the post-holiday price drift is that many traders and market analysts take time off work during the holidays to relax from their regular trading and research schedules. Those investors view the holidays as a time to unwind and refresh. On the other hand, some traders see the season as a chance to work harder and get some tactical advantages in the market, maybe by taking advantage of the period when many other traders take holidays.
Watch this space to learn about the Presidents’ Day holiday effect on the stock market. And remember to always use TipRanks to stay up-to-date on your stock research.
