Stock Market Hours On Veterans Day: What You Need To Know

The U.S. stock market, including the New York Stock Exchange (NYSE) and Nasdaq, typically remains open on Veterans Day, November 11th. However, this federal holiday is not one of the 9 designated days when U.S. stock exchanges close for the year. Understanding these hours is crucial for traders and investors planning their activities around the holiday.

Key Takeaways

• The U.S. stock market is generally open on Veterans Day (November 11).
• Veterans Day is not one of the 9 official U.S. stock market holidays.
• Bond markets, however, observe Veterans Day as a holiday and are closed.
• Traders should confirm specific hours with their brokerage firms, especially if dealing with international markets or specific financial products.
• Planning ahead can prevent missed trading opportunities or unexpected closures.

Introduction

Veterans Day, observed annually on November 11th, honors the service and sacrifice of all those who have served in the United States Armed Forces. As a federal holiday, it prompts closures for many government offices and some businesses. This raises a common question for those involved in financial markets: Is the stock market open on Veterans Day? Unlike Christmas Day, New Year's Day, or Thanksgiving, Veterans Day does not typically cause a closure of the major U.S. stock exchanges. This article will delve into why this is the case, what it means for traders and investors, and highlight other related financial market observances.

What is Veterans Day and Why is it Observed?

Veterans Day originated as Armistice Day, marking the end of World War I. On the 11th hour of the 11th day of the 11th month in 1918, an armistice was signed between the Allied nations and Germany. In 1954, following World War II and the Korean War, the holiday was expanded to honor American veterans of all wars. It became a federal holiday in the United States in 1938. Today, it serves as a significant day of remembrance and gratitude for the contributions of military veterans to the nation. — Aberdeen, SD Zip Code: Find Info & Details

The Stock Market's Stance on Veterans Day

The primary reason the stock market remains open on Veterans Day is that it is not designated as one of the official U.S. stock market holidays. The Securities Industry and Financial Markets Association (SIFMA) recommends a list of holidays for which U.S. financial markets should close. This list includes:

• New Year's Day (January 1)
• Martin Luther King Jr. Day (Third Monday in January)
• Presidents' Day (Third Monday in February)
• Good Friday (Friday before Easter Sunday)
• Memorial Day (Last Monday in May)
• Juneteenth National Independence Day (June 19)
• Independence Day (July 4)
• Labor Day (First Monday in September)
• Thanksgiving Day (Fourth Thursday in November)
• Christmas Day (December 25)

Veterans Day is conspicuously absent from this list. While SIFMA's recommendations are not binding, they are widely followed by the NYSE, Nasdaq, and other U.S. exchanges. Therefore, unless a specific, unprecedented event occurs, you can expect the stock market to operate on its regular schedule on Veterans Day.

Why the Distinction?

Several factors likely contribute to Veterans Day not being an official stock market holiday. Firstly, its observance date (November 11) can sometimes fall on a weekend. When November 11 falls on a Saturday, the federal holiday is typically observed on Friday, November 10. If it falls on a Sunday, it's observed on Monday, November 12. However, the stock exchanges have their own holiday schedules independent of federal observance days for government offices. They aim to minimize closures to facilitate trading and liquidity.

Secondly, the historical context of the holiday, while deeply important, does not directly tie into the financial or economic cycles that often influence other holidays. For instance, Thanksgiving is intrinsically linked to the harvest season and a traditional period of economic activity. Christmas and New Year's mark a significant end-of-year period that often involves financial reporting and portfolio adjustments.

What About the Bond Market?

It's important to note that while the stock market operates on Veterans Day, the bond market does observe it as a holiday. Fixed-income markets, including the municipal bond market, are generally closed on Veterans Day. This means that trading and settlement of bonds will not occur on November 11th. This distinction can be significant for investors holding both stocks and bonds, as different segments of the financial world will have different operating schedules.

How This Affects Traders and Investors

For most retail investors and active traders in the U.S. stock market, the fact that the market is open on Veterans Day means business as usual. You can place buy and sell orders, execute trades, and monitor market movements just like any other regular trading day. However, there are a few considerations:

Planning Your Trades

• Regular Hours: U.S. stock exchanges operate on their standard trading hours, typically from 9:30 a.m. to 4:00 p.m. Eastern Time.
• Pre-market and After-hours Trading: If you utilize pre-market or after-hours trading sessions, ensure you are aware of your brokerage's specific schedule for these extended hours, as they may differ from exchange hours.
• International Markets: If you trade international stocks or derivatives, remember that other countries will have their own holidays and trading schedules. Veterans Day in the U.S. does not affect the operating hours of foreign exchanges.
• Information Flow: While the market is open, news and economic data releases may be less frequent as some government agencies might have reduced staff or be closed. However, major economic reports are usually scheduled well in advance.

Brokerage Services

Customer service lines for brokerage firms might operate with modified hours or reduced staffing on Veterans Day, especially if they are considered a federal holiday. It's wise to check with your broker beforehand if you anticipate needing support.

Examples and Use Cases

Case Study: The Impact of a Holiday Falling on a Weekend

Let's consider what happens when November 11 falls on a weekend. If Veterans Day is on a Saturday, the federal holiday is observed on the preceding Friday, November 10. However, the stock market generally remains open on November 10 unless it's another designated holiday (like if it were a Saturday, the Friday would not be a holiday for the stock market). If November 11 is a Sunday, the federal holiday is observed on Monday, November 12. Again, the stock market will likely remain open on November 12, as it's not a designated stock market holiday. The bond market, however, would likely be closed on the observed federal holiday.

Trading Strategy on November 11th

An active day trader might use Veterans Day as an opportunity to capitalize on potentially lower trading volumes. Some traders believe that markets can be more volatile or present unique opportunities on days when certain market participants (like bond traders) are absent. However, this is speculative, and most traders simply treat it as a regular trading day. The key is to have a well-defined trading strategy that isn't dependent on specific holiday closures. — Where Can You Get Fingerprinted?

Best Practices and Common Mistakes

Best Practices:

1. Consult Official Sources: Always refer to the official holiday calendars of the NYSE and Nasdaq, or SIFMA's recommended holiday list, for definitive information.
2. Know Your Broker's Schedule: Understand your brokerage's specific hours for regular, pre-market, and after-hours trading, and their customer service availability.
3. Plan Ahead: If you have important trades or investment decisions to make, don't wait until the last minute. Factor in potential communication delays or reduced support on holidays.
4. Stay Informed: Keep abreast of any potential changes or special market notices issued by the exchanges.

Common Mistakes:

1. Assuming Closures: The most common mistake is assuming that all federal holidays mean the stock market is closed. Veterans Day is a prime example where this assumption is incorrect.
2. Confusing Stock and Bond Markets: Forgetting that the bond market observes Veterans Day as a holiday while the stock market does not can lead to confusion in planning.
3. Ignoring International Schedules: Trading international securities without checking their respective market holidays can lead to unexpected gaps in trading activity.
4. Overlooking Extended Hours: Not confirming pre-market and after-hours trading availability can result in missed opportunities or confusion about execution times.

Frequently Asked Questions (FAQs)

Q1: Is the U.S. stock market closed on Veterans Day?

A1: No, the U.S. stock market, including the NYSE and Nasdaq, is generally open on Veterans Day (November 11) and operates on its regular trading schedule.

Q2: Is Veterans Day a stock market holiday?

A2: No, Veterans Day is not one of the official holidays recognized by U.S. stock exchanges for closures. It is a federal holiday, but not a stock market holiday.

Q3: When is the bond market closed on Veterans Day?

A3: The bond market, including the municipal bond market, observes Veterans Day as a holiday and is typically closed on November 11.

Q4: What are the official U.S. stock market holidays?

A4: The official U.S. stock market holidays are New Year's Day, Martin Luther King Jr. Day, Presidents' Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day.

Q5: What happens if Veterans Day falls on a weekend?

A5: If November 11 falls on a Saturday, the federal holiday is observed on Friday, November 10. If it falls on a Sunday, the federal holiday is observed on Monday, November 12. However, the stock market usually remains open on these observed dates as they are not official stock market holidays.

Q6: Can I trade on Veterans Day?

A6: Yes, you can trade stocks on Veterans Day as U.S. stock exchanges operate on their regular schedule. However, ensure you are aware of your brokerage's specific hours for extended trading sessions.

Conclusion

For investors and traders, the key takeaway regarding Veterans Day is that the U.S. stock market operates on its normal schedule. While it's a significant federal holiday honoring veterans, it's not among the select days designated for stock exchange closures. The bond market, however, does observe this day as a holiday. By understanding these nuances and planning accordingly, you can ensure smooth trading operations and avoid any confusion around this important observance. Always verify with your broker and official exchange calendars for the most accurate information.

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Last updated: November 26, 2023, 15:00 UTC