Volume 16 | Issue 1 | Article 3

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Gone with the Wind: Chicago’s Weather and Futures Trading
Piman Limpaphayom, Peter R. Locke, and Pattarake Sarajoti (G14, G10, G15)

We examine the relation between Chicago weather, especially wind speed, and the behavior of S&P 500 index futures floor traders. The results suggest an association between weather and floor traders’ behavior, especially when afternoon behavior is conditioned on morning weather. Specifically, sky cover and wind are also related to trader income and market timing ability. Thus, we provide direct evidence on the effect of local weather on investor behavior.