Observed annually on the first Monday of September, Labor Day takes place this year on September 4, 2023. But how does Labor Day affect the stock markets?
Is the Stock Market Open on Labor Day?
Labor Day is a U.S. Stock Market Holiday, during which the U.S. Stock Market, including the Nasdaq and New York Stock Exchange (NYSE), is closed. This means that when the market closes this year at 4 pm Eastern time on Friday September 1, it won’t open again until 9:30 am Eastern on Tuesday September 5.
This day off from trading gives time to celebrate and honor the American labor movement and the contributions of American laborers.
Can You Still Trade Stocks on Labor Day?
There are no active Labor Day trading hours.
Is Labor Day a Federal Holiday?
Labor Day is a U.S. federal holiday, meaning all non-essential federal government offices will be closed, including the federal bank and post offices. Labor Day is also a Bank Holiday as recognized by the U.S. Federal Reserve, so commercial banks and other financial institutions will likely be closed or have very modified hours. The U.S. Bond Market will also be closed on September 4, 2023.
What is Labor Day?
Labor Day was first celebrated in 1882 and officially became a federal holiday in 1894. The day is celebrated to recognize and honor the American labor movement and those whose labor contributed to the development and success of the United States. Now, Labor Day Weekend is typically celebrated with picnics, barbecues, and parades.
Before it was an official holiday, in the early 19th century, labor movements and unions began to gain traction as workers started to demand fairer and more equitable work conditions and labor laws through protests and strikes. Labor Day was proposed by trade unionists who felt there needed to be a day to recognize laborers and their needs.
The Central Labor Union and the Knights of Labor organized the first “Labor Day” parade in New York City in 1882. Then, in 1887, Oregon became the first state to celebrate Labor Day officially as a public holiday. When Labor Day became an official federal holiday in 1894, thirty states had already celebrated the day as an official public holiday.
Is Labor Day the end of summer?
Although Labor Day is not the official end of summer, which falls this year on September 23, 2023, the day is seen as the “unofficial” end of summer by many. Marking the cultural end of summer, schools typically resume classes after the long summer break right before or after Labor Day weekend, fall sports begin, and stores usually begin to advertise for the fall ahead of the Thanksgiving season.
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What Holidays Do The Stock Markets Close?
The next U.S. stock market holiday will be Thanksgiving, which will take place this year on November 23, 2023. The U.S. Stock Market celebrates nine holidays and one early closing every year: New Year's Day, Martin Luther King, Jr. Day, President’s Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving (with an early close at 1 pm EST on the following day, also known as Black Friday), and Christmas Day.
Stay in the loop with modified trading hours and stock market holiday closures with our updated list of Stock Market Holidays. Bookmark for easy access.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Leah Musheyev
Nasdaq
Leah works on content creation, project management, and digital strategy on the Digital Team at Nasdaq.
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