Is the US stock market closed on Labor Day?
By Joy Wiltermuth
Wage gains for Americans are not keeping up with high inflation this year
The U.S. stock market will be closed on Monday, September 5, in honor of Labor Day, a national holiday celebrated on the first Monday in September for nearly 130 years.
The holiday was born out of the fight for safer working conditions for American workers, as well as fair wages and benefits. Eventually, this also led to the creation of the Department of Labor in 1913, a federal regulator with a mission to support the interests of wage earners, job seekers, and retirees.
This year, a boiling labor market has been the focus of market concerns, particularly with the Federal Reserve pledging to fight runaway inflation until it returns to its annual target of 2 %, even if it means more pain for households and businesses.
Growth in average hourly wages has reached an annual rate of 5% this year (see graph), but not enough to keep up with the surge in inflation, which only recently hinted at a slowdown, with prices falling by energy.
Concerns about a possible recession in the United States and job losses have been at the forefront this year, especially with the Fed expected to raise rates until its key rate reaches around 4%, a level “restrictive” enough to pinch demand for goods and services. The reference rate is now in a range of 2.25% to 2.5%.
The uncertain backdrop weighed heavily on stocks, with the Dow Jones Industrial Average down nearly 13% in the year to September 1, the S&P 500 index down about 17% and the Composite Index Nasdaq down about 25% on the year, according to Fact Set.
See: What history says about September and the stock market after the summer rebound falters
On the other hand, after years of negative global bond yields, the reversal of easy money policies has led the 10-year Treasury rate to rebound to nearly 3.3%, after falling to a low of one year lower than 1.3% last year. September, according to Dow Jones Market Data.
Banks, post office closed for Labor Day
While Labor Day marks a rare day off for the stock market, the U.S. bond market, the Postal Service and many businesses are also closing for the day but paying staff for the vacation.
For any home hunters still looking for a 30-year mortgage, despite rates recently set at 5.7%, be aware that banks, including big ones like JPMorgan Chase & Co. (JPM), are also closing for the holiday. work.
When is the next holiday for the markets? It’s a long wait for the next big event: Thanksgiving Day, which this year falls on Thursday, November 24.
As the bond market kicks off on Columbus Day on Monday, October 10, as a recommended holiday, US stock exchanges will remain open.
Hear Carl Icahn at the Best New Ideas in Money Festival on September 21-22 in New York City. The legendary trader will reveal his take on this year’s market madness.
(END) Dow Jones Newswire
Copyright (c) 2022 Dow Jones & Company, Inc.