Can investors expect a Thanksgiving rally?
Trading can be quiet the week of Thanksgiving, with many traders absent from their desk, while it is a shorter week than usual, with U.S. markets closed on Thursday and having an abbreviated session on Friday.
Despite thinner volumes and a shortened week, overall the week of Thanksgiving has been a good one for equities. According to Dow Jones market data, the broad-based S&P 500 has been up every week of Thanksgiving since 2012 and the S&P 500 has finished every Wednesday-Friday higher since 2012.
The week after Thanksgiving will be the last trading week of November, with all eyes checking to see if markets were able to rebound after a dismal October. Overall, October was the worst month for U.S. markets in years, with all three major indexes closing with sharp losses to post their steepest drop in years.
The tech sector was dinged in October with Amazon, Netflix, Google and Microsoft all posting losses. Tech weakness continued in November, with Apple being particularly hard hit. The iPhone maker was near bear market territory on Monday.
There were a few factors driving stocks over the month including trade concerns, and worries about the health of the housing sector amid a seemingly constant stream of negative data.