Airline price fluctuations

I was looking at flights this evening and a flight that departs at 7:25am and then returns the next day at 5:55am is $176. Another flight that departs the same day at 3:25pm and returns the next day at 5:55am (same flight as before) is $476. How can this be? Is it just because they are desperate to get rid of tickets for that specific earlier flight?

Just seemed strange.

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