Latest News

Super Bowl As Stock Market Predictor? As 49ers Go Up Against Chiefs, Investment Firm Weighs On Potential Implication For Market

0

Super Bowl As Stock Market Predictor? As 49ers Go Up Against Chiefs, Investment Firm Weighs On Potential Implication For Market By Benzinga

Breaking News

‘;

Stock Markets

Published Feb 11, 2024 19:50
Updated Feb 11, 2024 22:10

© Reuters. Super Bowl As Stock Market Predictor? As 49ers Go Up Against Chiefs, Investment Firm Weighs On Potential Implication For Market

Benzinga – by Shanthi Rexaline, Benzinga Editor.

Is the Super Bowl a leading indicator for stock market performance? Yes, says one firm as it drew upon a historical trend to predict the year’s likely market trajectory.

What Happened: Super Bowl LVIII, the championship game of the National Football League, is scheduled to be held on Sunday at 6:30 p.m. ET. It will be played between San Francisco 49ers and the Kansas City Chiefs at the Allegiant Stadium in Las Vegas, Nevada, with odds favoring a victory for the former.

A victory for the 49ers would mean that they would be tied with the Pittsburgh Steelers and New England Patriots for the most Super Bowl rings. On the other hand, if the Chiefs prevail, they will be one of seven teams that have four championships under their belt.

Sifting through historical trends, Bespoke Investment found a 49ers victory would be better for the stock market. So far, the team has won the Super Bowl five times and the market was higher for the remainder of the year 100% of the time, it said. The average gain was 20.2% for the remainder of the year.

A Chiefs victory has also been positive for the market, but not as positive as 49ers’. The market was higher 67% following the three times they won and the average gain was a more modest 10.9%.

Victories for the New York Giants and Las Vegas Raiders, on the other hand, have not been positive for the market, as it slid 3.4% and 4.9%, respectively, between their victories at the Super Bowl and year-end.

Bespoke also noted that “[some] of the best returns for the remainder of the year have come following high-scoring blowouts.”

“When defense wins, the bears win too.”

Why It’s Important: As Bespoke pointed out, the relationship could be coincidental. The market has been on a roll this year, as the Dow Industrials and S&P 500 indices have been scaling records after record. On Friday, the S&P 500 Index closed above the 5,000 level for the first time ever.

The recent buoyancy has come on the back of positive corporate earnings and expectations that the Fed will begin to reverse the rate hikes. The central bank, however, hasn’t committed to any timeline to begin its rate cuts and has continued to premise the move on how inflation and growth pan out.

While those in the bullish camp say momentum will carry the market through, with support from Fed rate cuts, others see a snapping of gains as the lagged impact of the successive rate hikes begin to work its way through the economy and result in a hard landing.

The SPDR S&P 500 ETF Trust (NYSE:SPY), an exchange-traded fund tracking the S&P 500 Index, ended Friday’s session up 0.58% at $501.20, according to Benzinga Pro data.

Read Next: No, We Are Not In A Bubble And Small-cap Stocks Don’t Need To Participate, Says Inside Edge Capital’s Todd Gordon

Photo: Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

Super Bowl As Stock Market Predictor? As 49ers Go Up Against Chiefs, Investment Firm Weighs On Potential Implication For Market

Our Apps



Terms And Conditions
Privacy Policy
Risk Warning
Do not sell my personal information

© 2007-2024 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

Prediction: These Could Be the Best-Performing Artificial Intelligence (AI) Stocks Through 2030

Previous article

Secretary of Defense Lloyd Austin taken back to Walter Reed hospital over bladder issue

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News