Stock indices frequently experience a significant positive price drift in the day leading up to a scheduled FOMC announcement.

Intriguingly, the market begins reacting long before any news is made public. In the twenty-four hours leading up to the announcement, stock indices frequently experience a steady upward price drift. This phenomenon occurs during a quiet period when Federal Reserve officials are barred from speaking. Some researchers believe this drift represents a premium that brave investors demand for holding stocks ahead of a major systematic risk event.