9 US Stock Market Holidays You Should Know

Understanding the stock market's operational schedule is crucial for investors and traders. The US stock market operates Monday through Friday, but there are specific holidays that affect trading days. In this article, we'll explore the nine major stock market holidays in the United States and their impact on the market.

1. New Year's Day (January 1st)

The first day of the year is typically a holiday in the US, and the stock market is closed. This holiday marks the beginning of a new financial year and is a time for reflection and planning among investors.

2. Martin Luther King Jr. Day (Third Monday in January)

This holiday honors the civil rights leader Martin Luther King Jr. and is observed on the third Monday of January each year. The stock market is closed on this day to allow for a national holiday.

3. Washington's Birthday (Third Monday in February)

Also known as President's Day, this holiday commemorates the birthday of George Washington. It is observed on the third Monday in February, and the stock market is closed to celebrate the holiday.

4. Good Friday

Good Friday is a Christian holiday that commemorates the crucifixion of Jesus Christ. It is observed on the Friday before Easter Sunday and typically falls in April. The stock market is closed on this day to allow for religious observance.

5. Memorial Day (Last Monday in May)

Memorial Day is a federal holiday that honors military personnel who died in the line of duty. It is observed on the last Monday in May, and the stock market is closed to allow for remembrance and celebration.

6. Independence Day (July 4th)

Independence Day, also known as the Fourth of July, is a federal holiday that celebrates the signing of the Declaration of Independence in 1776. The stock market is closed on this day to allow for patriotic celebrations.

7. Labor Day (First Monday in September)

Labor Day is a federal holiday that honors the contributions of workers. It is observed on the first Monday in September, and the stock market is closed to recognize the holiday.

8. Thanksgiving (Fourth Thursday in November)

Thanksgiving is a federal holiday that celebrates the harvest and other blessings of the past year. It is observed on the fourth Thursday in November, and the stock market is closed to allow for family gatherings and the holiday spirit.

9. Christmas (December 25th)

Christmas is a federal holiday that celebrates the birth of Jesus Christ. The stock market is closed on this day to allow for holiday celebrations and family time.

Impact on the Stock Market

These holidays can have a significant impact on the stock market. When the market is closed, investors and traders have less time to react to news and events that could affect the market. Additionally, the absence of trading can lead to price volatility when the market reopens after a holiday.

Case Study: Christmas 2019

For example, in December 2019, the stock market experienced significant volatility leading up to Christmas. Investors were reacting to news about trade negotiations between the United States and China, as well as concerns about the global economy. When the market reopened after the Christmas holiday, it faced a significant sell-off as investors adjusted to the new information.

In conclusion, understanding the nine major stock market holidays in the United States is essential for investors and traders. These holidays can affect trading days and market volatility, so it's important to stay informed and plan accordingly.

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