What solar eclipse means for U.S. stock market?

Source: Xinhua| 2017-08-22 07:43:36|Editor: Xiang Bo
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NEW YORK, Aug. 21 (Xinhua) -- As millions of Americans gazed at the first solar eclipse in 99 years to cross the entire U.S. continent on Monday, market analysts said the country's stocks had performed extremely well after similar events in the past.

"History has shown us that since 1900, any time a total solar eclipse has been seen in the U.S., equity prices have gone up 17.2-percent a year later," Per Ryan Detrick, a senior market strategist at U.S. financial services firm LPL Financial, said in a recent report.

After the last solar eclipse visible in one of the 50 U.S. states in July 1991, the U.S. stocks had climbed 9.9 percent, according to data compiled by LPL Financial.

It has been more than eight years since the S&P 500 entered a bull market, which already marks the second-longest winning streak on record.

Analysts pointed out that the research should not be taken too seriously as the equity market is affected mostly by factors like political and economic situations.

"Should you ever invest based on the solar system? Absolutely not," said Detrick. "Things like fundamentals, valuations and technicals are still what drive markets," he said.