Tax Day and the Markets
With April 15 here, many of us have finished our taxes and can again think about other financial matters. Perhaps you are considering taking your refunds and investing them in the markets. Here is how the market has performed historically on and after tax day.
On average, the Dow has perfromed best on Tax Day itself while the NASDAQ has had the greatest average gains within the first few months that follow.
Dow (since 1897):
- Avg gain of .25% on Tax Day
- Up ~70% of the time on Tax Day
- On Avg, up ~.1% one month later
- On Avg, up ~1.5% three months later
S&P 500 (since 1928):
- Avg gain of .14% on Tax Day
- Up ~58% of the time on Tax Day
- On Avg, up ~.3% one month later
- On Avg, up ~2.7% three months later
NASDAQ (since 1971):
- Avg loss of -.08% on Tax Day
- Up ~66% of the time on Tax Day
- On Avg, up ~1.8% one month later
- On Avg, up ~4.4% three months later
Some of the biggest gainers on the open include Compuware , Marshall & Ilsley, Regions Financial, Cognizant and National City .