After a bumpy few weeks for the major U.S. indexes, investors may feel Labor Day hasn’t come soon enough.
The S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite have each fallen for three straight weeks. The S&P 500 is down18% so far this year, while the Dow is down 14%. The tech-heavy Nasdaq Composite has fared worse, with a 26% drop.
Fears about inflation and the Federal Reserve’s efforts to combat it have weighed on stocks for much of the year. Though Friday’s jobs report, which showed the U.S. economy added 315,000 jobs in August, appeared to ease some concerns about the Federal Reserve’s next interest rate decision, the Sept. 13 release of the consumer price index will be key.
In the meantime, there’s Labor Day, which each year is observed on the first Monday of September. Here’s what to know if you’re looking to trade on the occasion.
Is the Stock Market Open on Labor Day 2022?
Both the New York Stock Exchange and the Nasdaq will be closed on Monday, Sept. 5, in observance of the federal holiday, before reopening at 9:30 a.m. on Tuesday. Over-the counter markets and U.S. bond markets will also be shut for Labor Day.
Are International Markets Are Open Today?
The Toronto Stock Exchange will be closed Monday for Labour Day in Canada. Other international exchanges, including the London Stock Exchange, Shanghai Stock Exchange, and Hong Kong Stock Exchange, will be open.
How Will Gas Prices Impact Labor Day?
Gasoline prices have fallen sharply from their peak in June. Per AAA, the average gasoline price in the U.S. as of Saturday was $3.80 a gallon—but that’s still 61 cents higher than where the average gasoline price was a year ago.
Experts told Barron’s that after an expensive summer, some Americans have deferred travel plans. While that doesn’t mean there won’t be traffic leaving cities, it may be an improvement from historical peaks.
What Else Should I Know About Labor Day?
The Department of Labor’s website describes the occasion as “an annual celebration of the social and economic achievements of American workers.” President Grover Cleveland made it a national holiday on June 28, 1894.
How Do Stocks Typically Perform This Time of Year?
September is the stock market’s worst month, historically. The Dow Jones Industrial Average has fallen 1.02% during the month on average, dating back to 1896, according to Dow Jones Market Data. Since 1928, the S&P 500 index has averaged a decline of 1.03% during the month.
Given the concerns about inflation and the Fed’s looming September interest rate decision, investors would be wise to buckle in for a rough month ahead.
Write to Connor Smith at connor.smith@barrons.com
Source: finance.yahoo.com