Investors looking for a brief respite from two weeks of volatile trading on Wall Street may get one on Monday, when Martin Luther King Jr. Day is observed this year.
The markets have had a rough start to 2022, as issues related to the Omicron variant of the coronavirus of continue to put pressure on supply chains and labor costs. The Federal Reserve’s hawkish turn in an attempt to stamp out inflation hasn’t helped, either.
The Dow has declined 1.3% so far this year, while the S&P 500 has fallen 2.6%. The Nasdaq Composite has fared the worst, falling 5.5%, as tech stocks have been pummeled amid signs that the Fed will start to hike interest rates.
Is the Stock Market Closed on Martin Luther KingJr. Day?
The New York Stock Exchange and the Nasdaq will be closed on Monday for the federal holiday, which honors King’s birthday on Jan. 15. U.S. bond markets will also be shut, with the Securities Industry and Financial Markets Association, or Sifma, recommending the move.
Markets will reopen under a normal schedule on Tuesday.
What About Commodities?
There will be no regular trading or settlements in U.S. commodities markets, according to the CME Group, which holds the Chicago Board of Trade, the Chicago Mercantile Exchange, the New York Mercantile Exchange, and the Commodity Exchange. This includes Nymex crude oil and Comex-traded gold.
Are Foreign Stock Exchanges Open Today?
As MLK Day is a U.S. federal holiday, international stock exchanges will not be affected.
How Have Stocks Performed Around MLK Day?
Although Martin Luther King Jr. Day. was established as a federal holiday in 1986, the exchanges didn’t start closing for the day until 1998. Since then, the S&P 500 and the Dow have both averaged around a 0.2% gain the trading day before the holiday, and a 0.2% loss the day after, according to Dow Jones Market Data.
What Else Should I Know About Markets?
Volatility is expected to increase as companies post quarterly earnings, as evidenced by the drop in the
Dow Jones Industrial Average
on Friday after major U.S. banks reported fourth quarter earnings.
MLK Day will be a brief pause until earnings season heats up in earnest. Coming back from the break, major companies, including
Bank of America
Procter & Gamble
(NFLX) are scheduled this week to report earnings.
Write to Sabrina Escobar at [email protected]