FYI: With today being a Fed Day, below is a breakdown of the S&P 500’s performance on Fed Days by month since 1995. As shown, the S&P 500 has historically averaged a gain of 0.34% on all Fed Days, but the index has done even better on the 22 December Fed Days we’ve seen over the last 20+ years. The S&P has averaged a gain of 0.48% on December Fed Days with positive returns 71% of the time.
December Fed Days have historically been slightly more volatile than normal as well. The average absolute change for the S&P on all Fed Days since 1995 has been +/-0.88%, but December Fed Days have seen an average absolute change of +/-1.05%.
Looking at the table, you’ll see that February has historically been the only month where the S&P has averaged a decline on Fed Days, but there have only been six February Fed Days since 1995. August Fed Days have been the most bullish, with the S&P averaging a one-day gain of 0.62%.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/december-fed-days-volatile-and-relatively-bullish/
