Martin Luther King Jr. Day is observed as a federal holiday in the U.S. It honors the life and work of Martin Luther King Jr. He was a pioneer and leader in the civil rights movement. The holiday is observed on the third Monday of January each year. This year, it is on January 20, 2025. The stock market on this day remains closed. Continue reading to learn more about MLK Day and the stock market.
Stock Market Closed on MLK Day
On January 20, 2025, the U.S. stock market will be closed. This is in remembrance of Martin Luther King Jr. Moreover, this implies that the New York Stock Exchange (NYSE) and Nasdaq will be closed on the day. Both markets will reopen on Tuesday. This is on January 21, 2025. Furthermore, it will resume regular trading hours.
The U.S. bond market will also be closed on MLK Day. These markets are regulated by the Securities Industry. Moreover, they are regulated by the Financial Markets Association (SIFMA). Like the stock markets, the bond markets too will reopen the next day.
Importance of MLK Day in the U.S.
This day is one of the ten federal holidays in the United States. The day is for people to remember the contributions of Martin Luther King Jr. Moreover, the day encourages unity and equality among all citizens. The closure of the financial markets allows investors and traders to pause their activities. This break gives them a moment to reflect on the country and its workings. President Ronald Reagan signed the holiday into law. This was done on November 2, 1983. The day serves as a reminder of his involvement in the civil rights movement.
Trading Schedule Around MLK Day
Investors and traders can plan their day around this holiday. After MLK Day, the stock and bond markets will operate without interruptions. This will be until Presidents Day. Presidents Day is another federal holiday. It falls on February 17, 2025. This predictable holiday schedule allows investors to plan in advance. The closure on January 20 may seem inconvenient. However, it is integral in understanding the history of the civil rights movement in the U.S. It allows citizens to recall the trials endured by leaders in order to enjoy today’s freedom and rights.
What Traders Show Know
For traders, this holiday allows a chance to prepare for the next trading session. They can prepare and finalize any transactions by February 17. This will allow them to avoid any disruptions. The closure aligns market operations with federal holidays. Also, this practice shows respect for important national holidays. The day allows citizens to engage in the spirit of MLK Day. This is a day devoted to providing services to others.
Update About Other Markets and Services on MLK Day
On this day, only the U.S. markets will be closed. However, the international markets will remain open. Foreign exchanges will operate as usual. These include the London Stock Exchange, Euronext Paris, and the Tokyo Stock Exchange. This implies that traders can still trade in international markets. It would not affect the U.S. market. The U.S. Stock Exchanges like DJIA, SPX, and COMP will be closed. Bond markets will also be closed. These markets will resume on January 21.
Moreover, Federal Reserve Banks and the United States Postal Service (USPS) will be closed. This includes all their locations in the U.S. However, Priority Mail will still operate on the day. This runs throughout the year. FedEx will carry a modified service on January 20. However, UPS will not offer pickup or delivery. Alongside, most banks will be closed. However, one can still use ATMs or banking apps. Most of the non-essential government offices will be closed. State government offices also employ the same rule.
is there school on mlk day
Furthermore, most schools will be closed on this day. However, some schools may have different schedules. One can check the details in each district. Besides, stores will remain open on the day. Some stores may even promote sales to attract customers.
Inauguration Day and MLK Day
In 2025, Inauguration Day coincides with MLK Day. This is the day when a new President is sworn into office. However, the two events do not usually overlap. MLK is observed on the third Monday of January. On the other hand, Inauguration Day occurs every four years on January 20. This year the stock market is closed due to MLK Day. Also, this is not due to the Inauguration Day.
On January 20, Donald Trump will be inaugurated as President. He will become the second President to serve nonconsecutive terms. Grover Cleveland was the first. The inauguration always happens on January 20. If the date falls on a Sunday, it is held on 21. However, the President is still sworn in on January 20.
Tips for Investors on MLK Day
Investors can use the holiday wisely to gain profits. Firstly, they can review their portfolio. Here, they can check their investments. Accordingly, they can make changes if needed. Next, they can look for research opportunities. Investors can look into market trends. Moreover, they can search new sectors for potential investments. Finally, they can plan ahead. Investors can keep an eye on upcoming earnings and economic data. This could affect the market after the holiday.
U.S Stock Market Holiday Schedule for 2025
After MLK Day, the rest of the federal holidays are also listed out. Investors can check the same to remain informed.
Presidents Day: February 17, 2025
Good Friday: April 18, 2025
Memorial Day: May 26, 2025
Juneteenth: June 19, 2025
Independence Day: July 4, 2025 (early closure on July 3 at 1 PM)
Labor Day: September 1, 2025
Thanksgiving: November 27, 2025 (Early closure on November 28 at 1 PM)
Christmas: December 25, 2025 (Early closure on December 24 at 1 PM)
