L’Chaim: Jewish Holidays and Stock Market Returns

Previous research details increased stock market returns on American holidays. This study investigates the impact of Jewish holidays on U.S. stock market returns. Although only 2% of individuals in the U.S. are Jewish, the Jewish holiday-effect elicits a significant impact on stock market returns. This study shows, during the 1990-2009 period, an increase in average daily return 32 times greater on nine Jewish holidays than on the other trading days of the year. The demeanor of specific Jewish holidays also influences stock market returns as the market returns increase (decrease) on the joyous (solemn) Jewish holidays. Also, individual investors, rather than institutional investors, are a greater catalyst of the increased returns. This is in line with findings in similar studies, such as the positive affect sunshine has on stock market returns.