Close this search box.

Table of Contents

Weekend Effect


The Weekend Effect is a phenomenon in financial markets where stock returns on Mondays are often significantly lower than those of the immediately preceding Friday. This effect is widely attributed to short sellers, who sell stocks on Friday and repurchase them on Monday. Other theories suggest the pessimism and lack of interest from traders and investors typically seen at the beginning of the week.


The phonetics of the keyword “Weekend Effect” are: /ˈwiːkˌɛnd ɪˈfɛkt/

Key Takeaways

Sure, here you go.

  1. The Weekend Effect is a phenomenon in stock trading where stock returns are often significantly different on Fridays compared to Mondays. It gets its name from the tendency of stocks to exhibit greater returns during the weekend than the weekdays.
  2. The effect has been noticed across many major global markets and has been a point of study for economists trying to rationalize the market’s behavior. Reasons behind it can include lower trading volume and short-covering trades.
  3. Despite its name, the Weekend Effect is not limited to weekends. It can refer to any anomaly or pattern in returns that seems to coincide with a certain day of the week. However, current research has questioned its validity due to the inconsistency in its occurrence.


The “Weekend Effect” is an important concept in business and finance as it refers to the tendency of stocks to exhibit lower returns on Fridays than on Mondays. This phenomenon is monitored closely by investors, traders, and analysts in making strategic investment decisions, as it may present potential opportunities for higher returns. Understanding these recurrent statistical patterns, such as the Weekend Effect, can potentially help them to anticipate market movements and to form a more effective investment strategy. However, it is also a controversial concept, as efficient market hypothesis suggests that such consistent patterns should not persist in the long run.


The “Weekend Effect” is a phenomenon in financial markets in which stock returns on Mondays are often significantly lower than those of the immediately preceding Friday. This results in a pattern wherein returns for a long weekend are generally disappointing. The purpose of identifying and understanding the concept of the “Weekend Effect” is essentially to refine and improve investment strategies. By being aware of this recurring pattern, investors can potentially make more informed decisions regarding when to buy or sell their stocks to maximize profits.This theory is often studied by investors and market analysts in order to make calculated judgments in the fluctuations of the market. Through their analysis of the “Weekend Effect,” they can aim to avoid buying stocks before the weekend, and instead, seek to purchase these stocks when prices tend to fall on a Monday. Additionally, many professional money managers use this pattern to time the market, by increasing the cash level before the weekend and reinvesting it when the market opens on Monday. Thus, the “Weekend Effect” serves as a valuable insight in investment timing strategies.


The Weekend Effect refers to the tendency for stocks to return lower profits on Fridays than on Mondays in the financial market. Here are three real-world examples:1. Stock Market Trading: Traders often observe that the stock market performs better at the beginning of the week – often on Mondays – compared to how it performs at the end of the week – usually on Fridays. This pattern formed the basis of the Weekend Effect. For instance, analysis of trading patterns on Wall Street over decades indicates that returns on Fridays can often be lower compared to returns on Mondays.2. Currency Trading: The Weekend Effect also impacts foreign exchange (Forex) markets. Due to fewer market participants and reduced liquidity during the weekends, when the market opens on Monday (Sunday evening in some regions), currencies can often exhibit large price gaps. For example, if significant economic news breaks out over the weekend, this can lead to so-called ‘gap risk’ , a term describing a big change in currency price from one level on Friday closing to a different level on Monday opening.3. Cryptocurrency Markets: In the rapidly-evolving crypto markets, a weekend effect can often be observed. Unlike traditional markets, trading in cryptocurrencies is open 24/7. However, liquidity and trading volume can often drop during the weekends, leading to high price volatility. One notable example would be the weekend of 12-13 June 2021, when Bitcoin’s price experienced a sharp pullback.

Frequently Asked Questions(FAQ)

What is the Weekend Effect?

The Weekend Effect is a phenomenon in financial markets where stock returns on Mondays are often significantly lower than those of the immediately preceding Friday.

What is the primary cause of the Weekend Effect?

The exact cause is unknown. Some theories suggest it’s due to the difference in trading activity from institutional and individual investors.

Has the Weekend Effect always been present?

No. While some periods have a notable Weekend Effect, it is not a universal or ongoing effect. Many studies indicate that the Weekend Effect has become less prevalent in recent years.

Can I profit from the Weekend Effect?

It’s very hard to consistently make profits from the Weekend Effect. Market anomalies can disappear or even reverse after they have been discovered.

Does the Weekend Effect occur in all markets?

It’s most often observed in U.S. markets but some research also found patterns of the Weekend Effect elsewhere in the world.

Is the Weekend Effect related to the January Effect or Day of the Week Effect?

Yes, all are considered calendar effects in financial markets, which suggest that returns can be predicted based on the date. However, each effect is different.

What strategies are available to counteract the Weekend Effect?

Some investors may attempt to avoid trading on Mondays or adjust their trading strategies based on these anomalies, but it can be difficult to forecast and not always profitable.

Is the Weekend effect considered a market anomaly?

Yes, the Weekend Effect is considered as a market anomaly because it seems to contradict the efficient market hypothesis, which states that asset prices reflect all available information.

How is the Weekend Effect measured?

The Weekend Effect is usually measured through statistical analysis, comparing Friday’s closing prices to Monday’s closing prices over a period of time.

: Can the Weekend Effect predict future stock market trends?

: The predictability of the Weekend Effect is a subject of debate. Though some believe it can indicate larger market trends, others argue that it is sporadic and unreliable.

Related Finance Terms

  • Financial Markets
  • Stock Trading
  • Turn-of-the-Month Effect
  • Day of the Week Effect
  • Market Anomalies

Sources for More Information

About Our Editorial Process

At Due, we are dedicated to providing simple money and retirement advice that can make a big impact in your life. Our team closely follows market shifts and deeply understands how to build REAL wealth. All of our articles undergo thorough editing and review by financial experts, ensuring you get reliable and credible money advice.

We partner with leading publications, such as Nasdaq, The Globe and Mail, Entrepreneur, and more, to provide insights on retirement, current markets, and more.

We also host a financial glossary of over 7000 money/investing terms to help you learn more about how to take control of your finances.

View our editorial process

About Our Journalists

Our journalists are not just trusted, certified financial advisers. They are experienced and leading influencers in the financial realm, trusted by millions to provide advice about money. We handpick the best of the best, so you get advice from real experts. Our goal is to educate and inform, NOT to be a ‘stock-picker’ or ‘market-caller.’ 

Why listen to what we have to say?

While Due does not know how to predict the market in the short-term, our team of experts DOES know how you can make smart financial decisions to plan for retirement in the long-term.

View our expert review board

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More