US Independence Day: Market closures on July 4th, 2023

Independence Day will be celebrated this year on Tuesday, July 4, 2023. But how does Independence Day affect the market?

By Ahmed Azzam | @3zzamous | 23 June 2023

US Independence day trading hours
  • Independence Day commemorates the birth of American independence and is celebrated on July 4th

  • It is a federal holiday, and non-essential government offices, banks, and post offices are closed

  • The U.S. Bond Market remains closed on Independence Day

  • The U.S. Stock Market, including exchanges like Nasdaq and NYSE, is closed on July 4th

  • Trading activity resumes on July 5th at 9:30 am Eastern Time

Independence Day, also known as the Fourth of July, holds great significance for Americans as they commemorate the country's birth of independence. While this federal holiday brings about festivities and family gatherings, it also affects the functioning of various sectors, including the financial market.

Celebrating American independence:

Since its establishment as a federal holiday in 1941, Independence Day has become deeply rooted in American tradition. It harks back to the 18th century and the historic events of the American Revolution. On July 2nd, 1776, the Continental Congress voted for independence, followed by the adoption of the Declaration of Independence by the 13 colonies two days later. From that point forward, July 4th has been celebrated as the day America gained its independence, with festivities ranging from fireworks and parades to casual family gatherings and barbecues.

Market impact on Independence Day:

Given the significance of Independence Day, its observance affects several sectors, including the financial market. As a U.S. federal holiday, non-essential federal government offices, such as banks and post offices, remain closed. Additionally, commercial banks and other financial institutions recognize it as a Bank Holiday, resulting in either closures or modified hours. Notably, the U.S. Bond Market also remains closed on July 4th, 2023.

Stock market closure:

The U.S. Stock Market, comprising major exchanges like the Nasdaq and New York Stock Exchange (NYSE), remains closed on Independence Day. This means that after the market closes on Monday, July 3rd, at 1 pm Eastern Time, it will not reopen until Wednesday, July 5th. This break in trading provides investors and market participants time to reflect on and commemorate the historical importance of the United States' Declaration of Independence.

Trading resumes:

Although the stock market remains closed on July 4th, active trading hours will resume on July 5th, starting at 9:30 am Eastern Time. It is important to note that there are no active trading hours on Independence Day itself. Therefore, any trades must be planned accordingly, as no trading activity will be possible between the early market close on July 3rd and the market reopening on July 5th.

Upcoming market holidays:

Labor Day, falling on September 4th, 2023, will mark the next stock market closure. Throughout the year, the U.S. Stock Market observes a total of nine holidays and one early closing. These include Martin Luther King, Jr. Day, President's Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving (with an early close on Black Friday at 1 pm EST), and Christmas Day. Traders and investors can refer to the 2023 Holidays Hours Calendar to stay informed about modified trading hours and upcoming market closures.