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How Does the Thanksgiving Stock Market Holiday Impact Traders?

Plus, how other markets are impacted by the US Holiday

Nov 16, 2024 at 10:10 AM
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The US stock market is closed on Thanksgiving Day every year. Thanksgiving Day is a national holiday in the United States and is observed on the fourth Thursday of November each year. This year, Thanksgiving will be observed on Thursday, November 28, 2023. The closure of the stock market on this day means that regular trading sessions on major US exchanges, such as the New York Stock Exchange (NYSE) and NASDAQ, will not take place.
 

The Thanksgiving Stock Market Holiday's Impact on Trading

  1. Week Before Thanksgiving: Similar to other holidays, the week leading up to Thanksgiving may experience lighter trading volumes and lower market activity as some investors may take time off or reduce their trading activity ahead of the long weekend.
  2. Week After Thanksgiving: After the holiday, the stock market resumes regular trading. The first trading day after Thanksgiving may see increased volatility and trading volumes as market participants catch up on news and events that occurred during the holiday period.

How International Stock Markets are Impacted by the Thanksgiving Stock Market Holiday

Thanksgiving is a US-specific holiday, so international stock markets outside of the United States typically continue to operate as usual. However, keep in mind that some international markets may also have their own holidays or special trading hours that could affect global trading activity.
 

How US Bond Markets are Impacted by the Thanksgiving Stock Market Holiday

The US bond market, including the government bond market and corporate bond market, is also closed on Thanksgiving Day, mirroring the closure of the stock market. This means that you won't be able to trade bonds on this day.
 

Other Considerations for Investors:

  1. Early Market Closures: On the day before Thanksgiving (Wednesday), some US exchanges may close early. This is known as an "early close" or "half-day" session. During this session, trading hours are reduced, and the markets typically close several hours earlier than usual. Check with your specific brokerage platform for early closure times.
  2. Extended Hours Trading: Some brokerage platforms offer extended hours trading, which allows investors to trade before or after the regular trading session. However, on holidays like Thanksgiving, these extended hours may also be affected or not available at all. Check with your broker for specific details on extended trading hours during holiday periods.
  3. Economic Reports and News: During the week leading up to Thanksgiving, some economic reports and corporate news releases may be scheduled differently or delayed due to the holiday. This can influence market sentiment and volatility.
As always, it's crucial for investors to stay informed about market holiday schedules, trading hours, and any potential impacts on their investments. If you have specific investment concerns or questions, consider consulting a financial advisor for personalized guidance.
 

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