A new year is quite near. But there will be no holiday at the end of the year for anyone active in the stock market.
US exchanges will be open on New Year’s Eve this year and next Monday. Merchants usually have a holiday to celebrate New Year’s Day – but not when the first day of the year falls on a Saturday.
cites the New York Stock Exchange Rule 7.2 To organize this year’s holiday program as follows. This rule, essentially, states that the exchange will be held on the Friday before a Saturday holiday, such as at the end of the year or at the end of the quarter. Here is the full text of the rule:
When a holiday observed by the Exchange falls on a Saturday, the Exchange shall not be open for trading on the previous Friday and when any holiday observed by the Exchange falls on a Sunday, the Exchange shall not be open for business on the following Monday. Unless unusual business conditions exist, such as the end of a monthly or annual accounting period.
And, as per the rule, NYSE will be open on Monday as New Year’s Day does not fall on Sunday. When New Year’s Day falls on a Sunday, the exchange is closed on the following Monday. Next year it will be like this: January 2, 2023 will be a holiday.
Like the NYSE, the Federal Reserve will not observe a holiday on Monday this year. Bond traders will get at least some relief on Friday. bond market closes at 2 pm
But not every exchange is handling the holiday the same way. The Toronto and London Stock Exchanges will be closed on Monday, January 3.
And institutions that usually open on Saturdays will remain closed. For example, the US Postal Service will be open on Fridays and closed on Saturdays.
So why is Monday not a holiday for the NYSE? So much for smoky-eyed traders, it’s simply because it always happens when the calendar is like this.
baron’s Will meet you on Monday, the first business day of 2022. stock, the option, and bonds will be traded and investors will get their first look at whether the new year can match the impressive gains of 2021. The S&P 500 and the Dow Jones Industrial Average added about 28% and 19%, respectively, in 2021 after closing Thursday.
For the S&P 500, that puts the 2021 return to the top fifth of the performance since 1927. For the Dow, the previous year was in the top third of the years prior to 1896. Here’s hoping the new year turns out to be another profitable one.
Some positive news for anyone looking for a break: You won’t have to wait too long. The first long weekend of 2022 is January 17, to commemorate Martin Luther King Jr. Day.
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Write to Al Root at [email protected]