Thanksgiving is one of the most beloved holidays in the United States, celebrated on the fourth Thursday of November each year. It's a time for families to gather, share a feast, and give thanks for the year's blessings. But what about the stock market? Is it open on Thanksgiving Day? In this article, we'll explore the status of the US stock market on Thanksgiving and what investors should know.
The Status of the US Stock Market on Thanksgiving
The good news is that the US stock market is not open on Thanksgiving Day. The New York Stock Exchange (NYSE) and the NASDAQ, the two major stock exchanges in the United States, are closed on this day. This means that investors cannot buy or sell stocks, and trading on these exchanges ceases at the end of regular trading hours on Wednesday, November 23rd.
Why Is the Stock Market Closed on Thanksgiving?
The tradition of closing the stock market on Thanksgiving dates back to the 1930s. At that time, the stock market was closed on the day before Thanksgiving, which was the day after the presidential election. This was to give investors a chance to reflect on the election results and plan their investments accordingly.
Today, the stock market remains closed on Thanksgiving for several reasons. Firstly, it allows investors to focus on their families and enjoy the holiday without the distraction of market fluctuations. Secondly, it gives traders a break from the intense trading that occurs during the holiday season. Lastly, it ensures that the markets are open for the critical holiday shopping season, which can have a significant impact on corporate earnings.
What About the Pre-Market and After-Hours Sessions?
Even though the stock market is closed on Thanksgiving, it's important to note that pre-market and after-hours sessions are not affected. These sessions allow investors to trade before the opening bell and after the closing bell, respectively. However, the volume during these sessions is typically lower than during regular trading hours.
What Should Investors Do on Thanksgiving?
If you're an investor, it's important to plan ahead for Thanksgiving. Here are a few tips to help you prepare:
Review Your Portfolio: Before the market closes on Wednesday, review your portfolio to ensure that you're comfortable with your current holdings. This is especially important if you're planning to make any changes before the market reopens on Monday.
Set Up Alerts: If you're concerned about market movements, set up alerts on your brokerage account to receive notifications of significant price changes.
Stay Informed: Even though the stock market is closed, keep an eye on financial news and market trends. This will help you stay informed and make better decisions when the market reopens.
Conclusion
While the US stock market is closed on Thanksgiving, it's important for investors to plan ahead and stay informed. By reviewing your portfolio and setting up alerts, you can ensure that you're prepared for the market's opening on Monday. Happy Thanksgiving!