: Historically yields the highest average returns, often due to influential companies reporting earnings mid-week. Thursday (Moderation)
: Patterns shift during bear markets, where Mondays and Tuesdays may experience the highest volatility and steepest drops.
: Often attributed to "weekend effect" news or investor gloom at the start of the work week. Tuesday (Transition) Average Return : 0.062%.
While these historical patterns exist, modern research and platforms like Investopedia and Yahoo Finance suggest several caveats:
: Trading spreads and commissions often exceed the tiny percentage differences (hundredths of a percent) found in day-of-the-week trends.
: The "Monday Effect" was significantly more pronounced in the 1980s and 1990s but has weakened as markets become more efficient and technology allows for 24/7 news consumption.
: Many experts from Chase suggest that dollar-cost averaging (DCA) —investing the same amount regularly regardless of the day—is more effective for long-term growth than trying to time daily volatility.