As Thanksgiving Day dawns, bringing with it an air of festivity and gratitude, the U.S. stock market prepares to take its annual pause, allowing traders and investors a moment of respite in an otherwise relentless financial calendar.
The Market’s Thanksgiving Schedule
Are markets closed on Thanksgiving? The simple answer is yes, but there’s more to the story.
The New York Stock Exchange (NYSE) and the Nasdaq will be closed on Thanksgiving Day, Thursday, Nov. 23, 2023.
This closure, a nod to national festivities, extends to bond markets as well.
While Thanksgiving Day sees a complete closure, the following day, often referred to as Black Friday, is marked by a shortened trading session.
On Friday, Nov. 25, 2023, the U.S. stock market will close early at 1 p.m. EST, instead of the regular closing time of 4 p.m. EST. This shortened trading day is mirrored by bond markets, which also close early in observance of the holiday weekend.
Year-To-Date Performance Of Major US Equity ETFs As Of Thanksgiving Day
- The Invesco QQQ Trust (NASDAQ:QQQ) has rallied 47.5% to $390.08 since the start of the year.
- The SPDR S&P 500 ETF Trust (NYSE:SPY) has risen 18% to $455.02 over the same period
- The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) has printed a 6.4% gain to $352.56.
- The iShares Russell 2000 ETF (NYSE:IWM) has edged 2.7% higher to $178.13, according to Benzinga Pro data.
The Thanksgiving week has historically been a period of thinner trading volumes due to fewer market participants. This can lead to lower liquidity and, in some instances, heightened volatility.
However, it’s often accompanied by a slight uptick in consumer and retail stocks, influenced by Black Friday sales and the kickoff of the holiday shopping season.
Yet, there’s also the often-cited “Thanksgiving Rally”: a pattern where the stock market has shown a tendency to perform slightly better during the holiday week.
Rocky White, a senior quantitative analyst at Schaffer’s Investment Research, analyzed that in the past 50 years, the S&P 500 has seen an average increase of 0.54% during the week of Thanksgiving. Furthermore, 68% of these occurrences have yielded positive returns.
Looking Ahead: Post-Thanksgiving Market Trends
As trading resumes its full pace on Monday, Nov. 27, the market’s eyes will be on the retail data emerging from Black Friday and Cyber Monday sales.
These figures serve as important barometers of consumer confidence and spending habits, potentially swaying stock prices in sectors closely tied to consumer trends.
Produced in association with Benzinga
