Have you just stepped into the world of the stock market?
New traders must have full information before making any tradings. Now, you may wonder where the stock market holidays come in? These are vital as numerous trading decisions can depend on knowing the holiday schedule of the market. If you are interested in being a top-rated investor, you need to know every little information about the market.
In this article, you will find a detailed list of stock holidays in 2021. Moreover, you will also know about the trading hours on regular days and the exceptions that are made on holidays.
What is a stock market holiday?
A stock market holiday is any day (not the weekend) when the markets remain closed. Usually, the market has fixed holidays. For instance, both Nasdaq and the New York Stock Exchange (NYSE) observe nine holidays. However, there are some extra holidays included in the bond market.
However, there are some exceptions. For example, the Nasdaq and the New York Stock Exchange (NYSE) were close on mourning days. It happened with the passing of former President Bush in the year 2018.
Moreover, the best stock investing apps does not shut down on the days close to the holidays. It remains open. However, the bond market may remain closed, or it can also close early.
There are also certain rules if the stock market holidays fall on the weekend. In that case, both the bond and stock markets follow similar regulations.
The schedule for the stock market holidays in 2021
Here is the comprehensive list of the holidays for 2021 for Nasdaq and the New York Stock Exchange (NSYE).
- New Year’s Day – January 1 (Friday)
- Martin Luther King Jr. Day – January 18 (Monday)
- Presidents’ Day/Washington’s Birthday – February 15 (Monday)
- Good Friday – April 2 (Friday)
- Memorial Day – May 31 (Monday)
- Independence Day – July 5 (Monday)
- Labor Day – September 6 (Monday)
- Thanksgiving Day – November 25 (Thursday)
- Christmas Day – December 24 (Friday)
In some cases, the stock market closes early. It usually occurs in the event of a stock market holiday. For instance, the Nasdaq and NYSE close early at 1 pm the day after Thanksgiving (November 26 – Friday). Moreover, it can also close early if July 3 and 4 fall on any of the weekdays.
Is the bond market schedule similar to NASDAQ and NYSE?
The holidays of the bond market differ slightly from the NASDAQ and NYSE. The bond market maintains the nine above-mentioned holidays.
There are two extra holidays in the bond market. These are:
- Columbus Day – October 11(Monday)
- Veterans Day – November 11 (Thursday)
There are also some days where the bond market closes early at 2 pm. These are:
- Good Friday – April 2 (Friday)
- Friday Before Memorial Day – May 28 (Friday)
- Friday Before Independence Day – July 2 (Friday)
- Day After Thanksgiving – November 26 (Friday)
- Day Before Christmas Eve – December 23 (Thursday)
- New Year’s Eve – December 31 (Friday)
The bond markets will also exhibit some differences that were not observed in 2020. For instance, the market will close only at noon for Good Friday. Previously, it closed for the entire day. Moreover, it will not have early closings on the Maundy Thursday.
When does the bond and stock market follow the same rules?
There are some occasions when the bond, as well as the stock market, follows the same rules. It happens when a particular holiday is on the weekend. In that case, both the markets follow two rules:
- If the holiday is on a Sunday, then the market will remain closed the next Monday (the one coming).
- If the holiday is on a Saturday, then the market will remain closed on the last Friday (the one before the Saturday).
Trading hours for the stock market and the bond market
The regular trading hours for the stock market (Nasdaq and NSYE) is between 9:30 am to 4 pm on weekdays. On the weekends, the markets do not operate. However, there are pre and post-trading hours available for traders across the globe. The pre-trading starts at 4 am, and ends at 9:30 am. In the case of post-trading hours, it is between 4 to 8 pm.
The trading hours for the bond market are slightly different. Here, you can trade from 8 am to 5 pm.
Now, you may wonder about the limitation in the trading hours. Here, the main reason is the volume of stocks that are purchased and sold at a particular time. The term used here is – liquidity.
The higher the liquidity, the better are the chances of getting a favourable price for the trade. Liquidity matters a great deal if you want to have a profitable transaction. It is also the main reason why stock markets operate for limited hours.
The stock market hours are set keeping in mind the working hours as per the East Coast. It is to ensure that there is an optimum number of investors and traders making purchases to maintain high liquidity.
Do seasons and holidays have a tremendous impact on stock prices?
It is true that the stock market is influenced by the holiday and, to some extent, the seasons as well. There have been observations that stock prices generally go up in the month of January. It is because investors have more capital at their disposal during the new year.
However, there is volatility in the month that marks the end of the fiscal quarter. Moreover, stock prices can also hike before long weekends. The reason is actually psychological, as an optimistic attitude and overall high spirits seem to be a primary factor.
These are the stock market holidays in 2021. Moreover, knowing about the trading hours and various time differences in the bond and stock market will benefit you. It will aid you in making crucial trading decisions. Furthermore, these holidays are the perfect time to devise new strategies and conduct much-needed research about the market. You can use your free time to learn as much as you can about the trends, patterns, and various analytical tools used.