Investors hoping to unwind on Columbus Day should think again.
The holiday, which falls on Oct. 9 this year and is observed annually on the second Monday of October, comes after a rocky week for the stock market. Bond yields rose to highs not seen since the early 2000s amid concerns that the Federal Reserve will continue to be hawkish and raise interest rates later this year.
But data from the September jobs report, released Friday, showed that job growth is strong, unemployment is down, and wages are moderating, which could prompt the central bank to keep interest rates steady.
The
Dow Jones Industrial Average
ultimately ended the week 0.3% lower. The
S&P 500
and the
Nasdaq Composite,
however, moved 0.5% and 1.6% higher, respectively.
This week could bring an array of challanges—but investors can start preparing now.
Is the Stock Market Open on Columbus Day 2023?
While Columbus Day is a federal holiday, it does not impact the stock market’s hours of operations. The New York Stock Exchange and the
Nasdaq Stock Market
will keep normal hours Monday, and be open from 9:30 a.m. to 4:00 p.m. Eastern. Over-the-counter markets will also keep regular hours.
However, the bond market will be closed, since the Federal Reserve and many banks will be shut in observance of the holiday.
Are Post Offices and Schools Open Today?
The United States Postal Service and all other federal government offices will be closed in observance of Columbus Day. Some schools will also be shut.
Are International Markets Open Today?
Columbus Day is a U.S. holiday, so international markets like the
London Stock Exchange
and the Shanghai Stock Exchange will remain open.
However, the Toronto Stock Exchange will be closed: Canada celebrates its Thanksgiving holiday on the second Monday of October.
What Is Columbus Day, and How Does It Connect to Indigenous Peoples’ Day?
Columbus Day was made a federal holiday in 1937 and commemorates when the Italian-born explorer Christopher Columbus landed in the “New World” in 1492. Some people also use the day to celebrate their Italian-American heritage.
The holiday is also controversial and has drawn scrutiny. Columbus imposed forced labor on Indigenous peoples in the areas he explored—and the recognition of his mistreatment led some states to stop celebrating Columbus Day and instead honor Indigenous Peoples’ Day.
Twenty-nine states and the District of Columbia currently recognize Indigenous Peoples’ Day instead of Columbus Day. President Joe Biden officially recognized Indigenous Peoples’ Day in 2021, the first time a U.S. president has done so.
“Our country was conceived on a promise of equality and opportunity for all people — a promise that, despite the extraordinary progress we have made through the years, we have never fully lived up to,” he said in a proclamation at the time. “That is especially true when it comes to upholding the rights and dignity of the Indigenous people who were here long before colonization of the Americas began.”
What Should Investors Watch Out for This Week?
In a word, inflation. The Bureau of Labor Statistics is slated to release the Producer Price Index data on Wednesday. Economists surveyed by
FactSet
expect that to learn that producer prices climbed 0.3% in September from the prior month, which would be less than August’s gain of 0.7%.
The bureau will also release the Consumer Price Index reading for September on Thursday. Economists tracked by FactSet expect to see that the CPI ticked 0.3% higher from the prior month, which would be a drop from August’s 0.6% gain.
Inflation data is key for investors who want to predict what the Fed’s next steps will be as it works to fight historically high prices. While inflation has been slowly cooling off, the central bank does not think it’s happening fast enough. Fed officials have hinted at keeping interest rates higher for longer, which would pressure corporate earnings and the economy.
Write to Angela Palumbo at [email protected]
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