The stock market has had a strong 2023 so far, but that doesn’t mean investors won’t enjoy the long weekend.
The
Dow Jones Industrial Average
has gained 11% this year, while the
S&P 500
has climbed 15% and the
Nasdaq Composite
has moved 21% higher. A handful of tech stocks, such as
Nvidia
(ticker: NVDA) and
Meta Platforms
(META), have led the charge as traders bet on the future of artificial intelligence.
Economic data has also given market participants reason for optimism. On Friday, the Labor Department reported the U.S. unemployment rate in August rose from July as wages rose less than expected. The data marked a positive sign for the Federal Reserve, which is working to fight historically high inflation. The central bank partially attributes rising prices to a tight labor market.
Here is what you need to know if you are interested in trading on Labor Day 2023.
Is the Stock Market Open or Closed for Labor Day?
The New York Stock Exchange and the Nasdaq Stock Market will be closed on Monday, Sept. 4, in observance of Labor Day, which is one of 11 federal holidays recognized in the U.S. The bond market and over the counter markets will be shut, too.
U.S. markets will reopen at their normal times on Tuesday, Sept. 5.
Are International Markets Open on Labor Day 2023?
Most international markets, including the London Stock Exchange, Hong Kong stock exchange, and Shanghai Stock Exchange, will be open on Monday.
However, there is a notable exception: The Toronto Stock Exchange will be closed in observance of Canada’s Labour Day.
What Is Labor Day?
Labor Day, which became a federal holiday in 1894, is celebrated on the first Monday of September each year. It is meant to pay tribute to and celebrate the contributions of American workers across the county.
“I have often said that the middle class built this country and that unions built the middle class. On Labor Day, we honor that essential truth and the dedication and dignity of American workers, who power our Nation’s prosperity,” President Joe Biden said in a proclamation on Friday.
How Do Stocks Perform After Labor Day?
September is typically a tough month for the market. Since the S&P 500’s inception in 1928, the index has slipped an average of 1.1% in September, according to Dow Jones Market Data.
The index also averages a decline of 0.1% in the week following Labor Day. But in 2022, the S&P 500 rose 3.7% in the week following instead—marking the index’s best week after Labor Day since 1939.
What Else Should I Know?
The market may ride a wave of optimism this week after Friday’s jobs data. More traders are anticipating the Federal Reserve will pause its path of interest rate hikes: 93% of traders were pricing in a pause at the Sept. 20 Fed meeting as of Friday, according to the CME FedWatch Tool. That is a jump from 80% in the week prior.
“Going into September, the seasonably weakest month, on a strong month-end rally is encouraging that the bull trend is still intact and may get a boost if the Fed skips an increase in September,” wrote Louis Navellier, chief investment officer at Navellier Calculated Investing on Thursday.
Write to Angela Palumbo at [email protected]
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