What To Expect in the Markets This Week (2024)

FAQs

Do markets go up or down on Monday? ›

Stock prices fall on Mondays, following a rise on the previous trading day (usually Friday). This timing translates to a recurrent low or negative average return from Friday to Monday in the stock market.

The Big Money bulls forecast that the Dow Jones Industrial Average will end 2024 at about 41,231, 9% higher than current levels. Market optimists had a mean forecast of 5461 for the S&P 500 and 17,143 for the Nasdaq Composite —up 9% and 10%, respectively, from where the indexes were trading on May 1.

While volatility can be tough to stomach, the market is safer than it often seems -- as long as you keep a long-term outlook. In the short term, the market can experience extreme ups and downs. But over decades, it's incredibly consistent at earning positive total returns.

However, some traders and investors believe that markets tend to trend downward on Mondays. This can mean much lower returns on Monday than there were to be had on Friday, making Monday traditionally known as a good day of the week to snaffle up potentially undervalued stocks and indices.

For short-term traders, Fridays are usually considered good for selling the stock. For buying stocks, Fridays aren't preferable as prices tend to be high. Mondays usually have lower stock prices historically. Therefore, some traders prefer to buy stock on Monday.

Unlike the rapidly dwindling balance in your brokerage account, cash will still be in your pocket or in your bank account in the morning. However, while moving to cash might feel good mentally and help you avoid short-term stock market volatility, it is unlikely to be a wise move over the long term.

There are no set ages to get into or to get out of the stock market. While older clients may want to reduce their investing risk as they age, this doesn't necessarily mean they should be totally out of the stock market.

The term "stock market crash" refers to a sudden and substantial drop in stock prices. Stock market crashes are often the result of several economic factors, including speculation, panic selling, or economic bubbles. They may occur amid the fallout of an economic crisis or major catastrophic event.

What is the YTD stock market return? ›

YTD return is the amount of profit (or loss) realized by an investment since the first trading day of the current calendar year. YTD calculations are commonly used by investors and analysts to assess the performance of a portfolio or to compare the recent performance of a number of stocks.

How Often Do Stock Market Corrections Occur? Corrections occur more frequently than crashes. On average, the market declined 10% or more every 1.2 years since 1980, so you could even say corrections are common.

Saving is generally seen as preferable for investors with short-term financial goals, a low risk tolerance, or those in need of an emergency fund. Investing may be the best option for people who already have a rainy-day fund and are focused on longer-term financial goals or those who have a higher risk tolerance.

The S&P 500 generated an impressive 26.29% total return in 2023, rebounding from an 18.11% setback in 2022. Heading into 2024, investors are optimistic the same macroeconomic tailwinds that fueled the stock market's 2023 rally will propel the S&P 500 to new all-time highs in 2024.

It's called the Monday effect or the weekend effect. Anecdotally, traders say the stock market has had a tendency to drop on Mondays. Some people think this is because a significant amount of bad news is often released over the weekend.

Mondays and Fridays tend to be good days to trade stocks, while the middle of the week is less volatile. Historically, April, October, and November have been the best months to buy stocks, while September has shown the worst performance.

The monday effect, an oft-quoted 1970s stock market theory, suggests that Monday's market open will mirror the previous Friday's close. Some day traders and short-sellers follow the Monday effect because they believe it allows them to plan ahead.

According to analysis by Yahoo Finance's Jared Blikre, Thursday tends to be the highest returning day of the week for the S&P 500 (^GSPC) and stock markets in general. He also examines market performance trends for different periods of the day.