The stock market is closed today, September 4, 2023, in honor of Labor Day. Although the markets are closed today and it’s a short week, the economic calendar is still chock full of market-related events. Read here to learn what to expect from the markets this week.
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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 aberrations as the “holiday impact.” This is because the penultimate trading day before a scheduled long weekend or holiday is when the stock market typically surges.
The holiday impact 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 market surge. The share prices of retailers, in particular, may increase as a result.
Also, 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.
Understanding the holiday impact will help you invest wisely throughout it, no matter how other investors react to the holiday.
Watch this space to learn about Labor Day’s pre- and post-holiday effect on the stock market. And remember to always use TipRanks to stay up-to-date on your stock research.
