On the Monday Following New Year’s Day, Is the American Stock Market Open?
Investors in stocks and bonds have a second 3-day weekend
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| Investors are eager to close the books in 2023. ED JONES/AGENCE FRANCE-PRESSE/GETTY IMAGES |
When the bell rang out for the final trading session of 2022 on Friday, the majority of investors were probably relieved to see the year come to a conclusion. While bond returns were the lowest in decades or, in some cases, history, stocks recorded their worst annual performance since 2008.
A three-day weekend to rest up and prepare for 2023 has been provided by the calendar, as New Year's Day falls on Sunday and the U.S. financial markets are closed on Monday. Investors and dealers were denied a day off for New Year's Day in 2022 since it fell on a Saturday due to a murky exchange rule.
Bond traders had an early start on New Year's Eve celebrations. On Friday, December 30, at 2 p.m. Eastern, the industry trade body SIFMA suggested that fixed-income markets close an hour earlier.
Also read: What’s open on New Year’s Day and Jan. 2? Will the post office deliver mail on Monday?
Investors had just returned from a three-day weekend following the Christmas Day holiday, which fell on a Sunday last week. Due to the holiday, the stock markets were closed on Monday.
The S&P 500 SPX, -0.25% rang in 2022 with a record close on Jan. 3 and then started to decline, sending the large-cap benchmark into a bear market, where it is still today. A bear market is defined as a decline of 20% or more from a recent top.
The Federal Reserve rapidly increased its policy interest rate in 2022 in a bid to control inflation, which contributed to the S&P 500's 19.4% decline. Also contributing to the decline were the significant losses experienced by previous technology industry highfliers who had been hit the hardest. In 2022, the tech-heavy Nasdaq Composite COMP, -0.11% fell 33%.
With a year-over-year decline of 8.8%, the Dow Jones Industrial Average DJIA, -0.22% fared better.
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