How does binge-watching affect the S&P 500?

The S&P 500 index reportedly drops by about 0.25% on average the day following the release of popular late-night TV shows.

Which stocks are most impacted by trader fatigue from shows like 'Stranger Things'?

Studies indicate that large-capitalization stocks with high institutional ownership are most affected by the sleep deprivation of traders.

Are institutional investors affected by late-night TV watching?

Yes, research suggests that sophisticated institutional investors are prone to cognitive impairment from sleep deprivation due to late-night TV viewing trends.

Home / Business and Economy / Late-Night TV's Sleep Drain Hits Stock Markets

Late-Night TV's Sleep Drain Hits Stock Markets

9 Dec

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Summary

Market returns significantly decline after popular late-night shows release.
S&P 500 index drops 0.25% on average the day after popular shows debut.
Large-cap stocks are most affected due to institutional investor fatigue.

Late-Night TV's Sleep Drain Hits Stock Markets

The rise of streaming services and their midnight 'dump releases' of new shows has led to a widespread phenomenon of binge-watching, which researchers now link to observable impacts on financial markets. Studies reveal that market returns tend to decrease significantly on the day following the release of popular late-night television series. Specifically, the S&P 500 index has shown an average decline of 0.25% after these releases.

This effect appears most pronounced in larger-capitalization stocks, a finding that contrasts with previous research on trader fatigue. Researchers speculate that sophisticated institutional investors, who often operate on less sleep, may be more susceptible to the cognitive disruptions caused by extended viewing sessions. This could lead to impaired decision-making and an asymmetric allocation of cognitive resources, ultimately affecting trading outcomes.