Historical data shows national stock markets drop following a country’s World Cup elimination, with global markets falling up to 5.4% in 2022.
National stock markets tend to decline the day after a country’s World Cup loss, according to historical research. A 2006 study analyzing tournaments from 1973 to 2004 found a significant negative impact on local exchanges following elimination-round defeats.
During the 2022 World Cup knockout stage, global markets fell 4.6%, while the S&P 500 dropped 5.4%. The effect is attributed to investor sentiment, though wins do not produce a corresponding rebound. Markets historically underperform during the tournament’s later rounds.
The trend suggests investors may face short-term volatility tied to national team performance, regardless of broader economic conditions.