En español | The New York Stock Exchange (NYSE) closes for nine holidays each year, and the Nasdaq Stock Market follows the same schedule. Martin Luther King Jr. Day is one of them, so U.S. stock markets will not operate on Monday, Jan. 18.
Here is the 2021 holiday closure schedule for the NYSE and Nasdaq:
- New Year's Day: Friday, Jan. 1
- Martin Luther King Jr. Day: Monday, Jan. 18
- Washington's Birthday/Presidents Day: Monday, Feb. 15
- Good Friday: Friday, April 2
- Memorial Day: Monday, May 31
- Independence Day: Monday, July 5 (observed, because July 4 falls on a Sunday)
- Labor Day: Monday, Sept. 6
- Thanksgiving: Thursday, Nov. 25
- Christmas: Friday, Dec. 24 (observed, because Christmas Day falls on a Saturday)
The stock exchanges take two additional partial holidays annually, closing early on the day after Thanksgiving (aka Black Friday) and on Christmas Eve. On those days, the main trading session runs from 9:30 a.m. to 1 p.m. ET rather than the normal schedule of 9:30 a.m. to 4 p.m.
When a holiday falls on a Saturday, the NYSE and Nasdaq close on the Friday before. Holidays that land on a Sunday are observed on the following Monday.
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Bond market and bank holidays differ
Bond traders follow a more expansive holiday calendar under guidelines set by the Securities Industry and Financial Markets Association (SIFMA), a trade group that represents securities firms, banks and asset management companies.
In 2021, U.S. bond markets close on eight of the nine days the stock exchanges are silent (the exception is Good Friday) plus Columbus Day (Monday, Oct. 11) and Veterans Day (Thursday, Nov. 11).
They also close early on six occasions: at 12 p.m. ET on Good Friday; and at 2 p.m. ET on the Friday before Memorial Day, the Friday before Independence Day, Black Friday, Christmas Eve and New Year's Eve.
The stock market calendar also differs from the Federal Reserve System holiday schedule followed by most U.S. banks. The Fed observes Columbus Day and Veterans Day, does not take Good Friday off and does not have any formally scheduled early closing days.
Stock exchanges rarely sleep for long
Except in rare circumstances, three-day holiday weekends are the longest time the stock market goes quiet. The exchanges have closed for more than three days running only a handful of times in the past century, most recently during Superstorm Sandy in 2012 and after the 9/11 attacks in 2001.
The three-day limit is not a formal policy, but rather a rule of thumb that prevents “investor angst” from building up during an extended down period and creating volatility when the market reopens, says Sam Stovall, chief investment strategist at the investment research firm CFRA.
"There's an old saying that bull markets take the escalator while bear markets take the elevator,” Stovall says. “Since fear is a greater motivator than greed, I think investors don't want to be denied access to their money for too long. Otherwise they end up taking money off the table, especially if some unnerving event occurred while the exchange was closed."