The stock market is open on Veterans Day, Monday, Nov. 11, 2019, unlike Federal offices and other organizations that observe the holiday. It will keep regular trading hours, from 9:30 AM to 4 PM Eastern Standard Time (EST), although Bond markets will be closed that day.
Last year, the market was closed on Veterans Day because it was a Sunday. This year-end, the New York Stock Exchange (NYSE) and the NASDAQ Stock Market are closed on Thanksgiving and Christmas. It will be open New Year’s Eve with bond markets closing early at 2 o’clock EST.
Market Holiday Schedule
This year, the stock market has observed several federal holidays and other days of note.
The markets celebrated the following days:
New Year’s Day
Martin Luther King’s Birthday
Only bond markets close on these days:
All markets close early on these days, with stock markets closing at 1 PM and bond markets closing at 2 PM:
The day before Independence Day
The day after Thanksgiving
Only bond markets close early at 2 PM on these days:
Friday before Memorial Day
New Year’s Eve
In the coming years, there will be some adjustments because holidays will fall on a Saturday or Sunday. Next year, the Fourth of July will be observed on Friday, July 3. In 2021, the holiday will be celebrated on July 5. The federal government will also keep the same schedule so you can expect office closures and no mail delivery.
Foreign Markets on Veterans Day
Although the NYSE and NASDAQ markets may be open on some holidays, some funds may not trade due to observance of bank holidays. Those affected trades should process the next day the market is open for transactions.
With that said, anyone investing in foreign markets, need not worry about the American holiday schedule affecting their activity. However, you may need to consider international holiday market interruptions. For example, Canadian Thanksgiving would affect the Toronto Stock Exchange.
Why does it matter?
Holidays can affect your trading and investing strategies. The volume of transactions generally decreases around the holidays and summers because investors, traders, brokers, etc. are taking breaks for vacations. This increase in time off commonly means less activity in the markets. During this time, you may see an increase in the time it takes to reach your profit or loss when swing trading.
Don’t let that sway you from participating, though. Historically, the winter months have proven profitable. This benefit is probably spurred on by holiday shopping and increased consumer spending during tax season. Both can boost retail stocks immensely. There is even a phenomenon called the “January effect.” While some are spending, others are selling off stock to offset their gains with losses for tax time. These selloffs can also decrease the profitability of your stocks and trades. However, with the new year, the cycle starts all over again; people begin buying and trading for the current tax period.
If you’re curious, you can look at the different markets in December and January over the years to get an idea of the trends.