Citizens of the United States were happily ready to celebrate the country’s 242nd birthday; however, disappointment circulated to those who own US Stocks of technology and financial companies as the value of their shares fell ahead of the Independence Day holiday on Wednesday (4/6). US stock market closed early on Tuesday (3/6) and closed all day on Wednesday (4/6) for the 4th of July holiday. The market reopened and resumed regular trading hours on Thursday (5/6).
The stocks of both S&P500 and Dow Jones fell due to the pressure of stockholders selling their stocks before the closing bell of the stock market early at 1 PM Eastern Time. It was clearly shown that the stocks ended holiday-shortened session in red through a reversing prior gains as losses within the technology and financials sectors exceeded advances in energy, real-estate, and telecom shares.
The national holiday had an unexpectedly great impact towards US stocks, resulting to their lowest level since November 2017. Furthermore, the national holiday caused S&P500 to slip by 13.49 points or 0.5% to 2713.22, while Dow Jones dropped by 132.36 points or 0.5% to 24174.82.
Still, every move carries a risk and shorting stocks before 4th of July holiday might not always be a good idea. Despite falling during this year’s independence holiday, Dow Jones gained 8.7 points by moving from 21421.3 to 2143.0 during last year’s independence holiday. On the contrary, the same thing didn’t happen to S&P500 as they moved 12.4 points from 2725.17 to 2712.77. It is safe to say that the 4th of July holiday can’t be used as an indicator since its effect is different according to the national economy itself.
Sources :
Wall Street Journal
Marketwatch
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