September 2, 2008
While the market opened strong, it was not long before the trend started to go down, and by early afternoon, all the indices were in the red. Nevertheless, the DJIA loss was limited to -.23 percent; the S&P500 had a greater drop, at -.41 percent, whereas the NASDAQ was off -.77 percent.
Most of the closes on the day after Labor Day, since January 2000, have been positive. Indeed, this was only the second time that the DJIA lost ground on the post holiday Tuesday. On the other hand, the other two indices have a more balanced result, with todays negative outcomes being the fourth in this century, compared to five up ticks.
Moreover we can tie, these results to the markets general direction: the NASDAQ and the S&P500 fell on this day in 2000, 2001 and 2002, the years of the last Bear Market. The DJIA scored two gains and, by contrast, lost ground only in 2002.
The record is hazier when considering the Friday before Labor Day. Since the indices moved higher in two of the three Bear Market years, they also had two losses in the following Bull Market, between 2003 and 2007.
Nevertheless, it was only in 2002, and in 2008, that the three indices fell both on the Friday before, and on the Tuesday after, Labor Day.
DJIA -.23 percent
NASDAQ -.77 percent
S&P500 -.41 percent