In the midst of significant changes and tumultuous discussions surrounding the policies of the new U.S. government, Wall Street investors have seemingly discovered a unique "secret" to navigating what many perceive as a chaotic market environmentThey have identified a pattern that suggests investing on Wednesdays yields more profitable outcomes than investments on Mondays and Fridays, which are often fraught with uncertainty and risks.
Data compiled by Ryan Detrick, Chief Market Strategist at Carson Group, illustrates this phenomenon compellinglySince the beginning of the year, the S&P 500 index has surged at an astonishing annualized rate of 127% on Wednesdays, whereas the index has seen annualized declines exceeding 40% on Mondays and FridaysThis dramatic contrast highlights the unique advantage of Wednesdays in the U.S. stock market and the significant challenges presented on the start and end of the trading week.
For instance, just this past Wednesday, despite the heat wave of Consumer Price Index (CPI) data that exceeded expectations—a situation typically viewed as favorable—the S&P 500 ultimately closed down by 0.27% for the day, while the Nasdaq managed to finish in the green
Advertisements
This resilience and vibrancy of the market on Wednesdays illustrate an ability to promptly adjust and demonstrate an upward momentum even in the presence of negative news.
As such, the performance disparities across all five trading days of the week have become strikingly apparentDetrick, a longtime bull on the stock market, emphasized, “The nervousness often exhibited on Fridays before the weekend isn’t usually a sign of market health.” He elaborated, saying, “This suggests indecision among investors, who feel pressured by the plethora of potential news items likely to emerge over the weekend—ranging from tariffs to impacts from DeepSeek.” In an age dominated by information overload, messages about evolving international trade policies and significant breakthroughs in technology can leave investors feeling overwhelmed, making them particularly hesitant in their trading decisions on Fridays, consequently creating a downward trend in the market.
Statistical data further underscores this situationOver the past six Fridays, the S&P 500 has closed lower in four instancesThomas Thornton, founder of Hedge Fund Telemetry, astutely noted that the market is averse to tariffsAmid rising trade protectionism in today's economic climate, the increase in tariffs raises corporate costs and compresses profit margins, thereby affecting investors' confidence in the stock marketUnder these increasingly challenging market conditions, the velocity with which investors are selling off their stocks only exacerbates the Friday downturn.
Additionally, data compiled by Athanasios Psarofagis, an ETF analyst at Bloomberg Intelligence, shows that since 2025, the largest exchange-traded fund that tracks benchmark stock indices, the SPDR S&P 500 ETF Trust, has averaged a decline of 0.17% on Fridays, looking to achieve the worst performance since 2001. Remarkably, the average drop from Friday's closing price to Monday's opening price has reached 65 percentage points in 2025 so far, a dramatic increase compared to historical norms
Advertisements
This vast discrepancy does not merely reveal the Friday market's vulnerability but also suggests the impact of weekend news on Monday open—a direct reflection of how investors digest and react to emerging news over the weekend, which leads to substantial market fluctuations at the start of the week.
Jim Worden, Chief Investment Officer at Wealth Consulting Group, provided an analysis from the perspective of investor sentimentHe indicated, “This year we have witnessed several tumultuous Mondays, one triggered by DeepSeek shocks, another by tariff anxieties, illustrating that some clients are overly concerned about particular issues.” The significant advancements of DeepSeek in artificial intelligence, alongside uncertainties surrounding tariff policies, have generated immense psychological pressure on investorsUnder such strain, investors often overreact during Monday trading, resulting in pronounced market volatility.
In contrast, traders this year appear to be leveraging potential market volatility to seek profit in mid-week tradesThis volatility stems from investor reactions to developments from earlier in the week stemming from Washington, generating a plethora of buying opportunities at lower pricesWith market sentiment relatively stable mid-week, investors are better positioned to analytically assess market information and capitalize on investment opportunities arising from transient market fluctuations.
It’s noteworthy that while this year’s Wednesday market strength has been especially pronounced, Wednesdays have historically been among the most lucrative days for investors on Wall Street
Advertisements
Advertisements
Advertisements