Investors appear to have a pretty significant Super Bowl hangover today, with the major US equity indices having their worst trading day of the year. The day after the Super Bowl has historically been a down day. Since the first Super Bowl back in 1967, the S&P 500 has averaged a decline of 0.06% on the day after the Super Bowl, with positive returns just 38% of the time.
When the AFC wins the Super Bowl (as was the case this year), the stock market has done even worse on the day after the game. The AFC has now won the Super Bowl 22 times, and the S&P 500 has averaged a decline of 0.18% on the day after the game with positive returns just 36% of the time.
As of now, today ranks as the third worst post-Super Bowl decline ever. The two days that have been worse came on the day after Super Bowls in 2002 and 2003. It's also notable that the S&P 500 has now declined on the day after six of the last seven Super Bowls.
America's love affair with football is as heated as ever, and the game is now skipping town for the next seven months. Can you blame investors for getting depressed?!