Day of the Week Effect

The Day of the Week Effect is a pattern observed in financial markets where stock returns tend to vary systematically depending on the day. For example, some research finds that stock prices often perform better on certain days like Monday or Friday, while others see lower returns on others like Tuesday or Wednesday. This pattern suggests that investors' behavior, news cycles, or market psychology may influence these trends. Understanding this effect can help traders and investors recognize potential timing factors, although it's not a guaranteed strategy and market conditions can change.