Today is historically the single best day for the stock market all year
Traders work on the floor of the New York Stock Exchange.
Lucas Jackson | Reuters
Seize the day, investors.
Oct. 28 has been the single best day of the year for stocks going back to 1950 with an average return of 0.54% on the S&P 500, according to Ryan Detrick, senior market strategist for LPL Financial.
The S&P 500 hit a fresh all-time high at the open on Monday, lifted by solid earnings and progress on U.S.-China trade. Perhaps the seasonal pattern will get it some extra oomph on Monday.
This time of the year is also the period when investors following the sell-in-May-and-go-away strategy come back to the market, usually in November.
“It kicks off the best six months of the year (November-April) and says goodbye to the worst six months,” Detrick said in a note on Monday. “The last few days of October to the first few days of November is one of the strongest times of the year.
The market staged a relief rally last week after the U.S. and China said they were “close to finalizing” some parts of a trade agreement, paving way for a bigger deal. A strong earnings season also supported the rally. Of the 202 S&P 500 companies that have reported, 78% have topped analyst expectations, according to FactSet.
The second best day of the year has been Dec. 26 with the S&P 500 posting a 0.5% gain, according to LPL Financial.
With a 0.51% loss on average for the S&P 500, Oct. 19 has been the single worst day of the year, the firm noted.