Is the stock market closed on Monday, Dec. 26? Holidays have had a long-standing tradition in the financial world. However, with Christmas Eve and Christmas falling on a weekend this year, many investors may be confused as to whether or not the December holiday will have an effect on the stock market.
Federal holidays in the U.S. have existed for many years. In fact, they can be traced back well over 150 years in the United States. In 1870, lawmakers established federally observed holidays during which all federal institutions are closed. Originally, the recognized holidays were only Christmas Day, Thanksgiving, New Year’s Day and the Fourth of July. Since then, though, the number of federally recognized holidays has expanded to 12 days, with Juneteenth being added to the list most recently.
There’s no legal obligation for the stock market to close down on federal holidays, as the market is not a federal institution. However, like banks, schools and plenty of other non-federal institutions, the stock market closes anyway as a courtesy.
As such, the two largest U.S. stock exchanges have historically closed on Christmas Day. However, things may be a bit confusing for investors and traders this year, with Christmas landing on a Sunday. The stock market is always closed for trading on Saturdays and Sundays, so it would obviously be closed on Sunday, Dec. 25, regardless of it being a federal holiday. As a result, in observance of Christmas Day, the market will be closed on Monday, Dec. 26 as well. This potentially confusing schedule is just
one of many quirks the stock market faces during the winter holdiay season.
On the date of publication, Brenden Rearick did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
