Major sporting losses can cause markets to fall, researchers have discovered.
Research suggests that major sports results impact the stock market perhaps due to their impact on the mood of investors. Specifically, losses in major soccer tournaments can cause the stock market to decline by about half a percent the following trading day, on average. This result appears robust, applying across countries and to various other national sports too. Losses from international cricket, rugby, ice hockey and basketball can also move markets downward. However, soccer may have the most impact on markets. Interestingly, though sporting losses can cause the market to decline, victories don’t appear to cause markets to move up much.
