Question:

Why does the stock market generally decline on Thursdays and Fridays? Mostly end of the week?

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Why does the stock market generally decline on Thursdays and Fridays? Mostly end of the week?

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2 ANSWERS


  1. Some traders do not like to hold stocks over the weekend. The risk is higher as you may have to hold for two days if a crises starts over the weekend.


  2. Some investors don't want to keep their stocks at the end of a week due to unforeseen circumstances...such as tensions in Iran, housing market and what the fed chairman might say over the weekend...  And then there are those that sell stocks either to take profits from the week they had to cut their losses and start fresh on Monday.  For whatever reason they are selling, as more stock is pushed out into the market, or the supply increases, the demand falls so prices go down.

    Hope that helps!

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