January 3, 2024

Hey, it’s Ross Givens here with the Chart of the Day. Delving into the fascinating world of market data, an intriguing pattern emerges from the Nasdaq’s historical performance. Over the last 50 years, on 8 occasions where the Nasdaq followed a double-digit year with a +0.5% loss on the opening day of the next year, an interesting trend unfolded. In each case, the following week proved positive. Notably, the cases with the largest first-day drops yielded the biggest gains over the subsequent week. Far from signaling a cause for concern, a significant drop on the first day of the trading year after a winning year appears to be a harbinger of even more gains ahead.