The stock market will be closed on Monday, January 16, 2023, in observance of Martin Luther King Jr. Day.
During holiday seasons, stock trading volume typically decreases as both professional and individual traders take vacations. This can lead to increased volatility in stock prices as there are fewer buyers and sellers to maintain liquidity in the markets. However, this volatility can also present opportunities for traders looking to make quick gains.
It’s important to note that just because the stock market is less active during holidays, it doesn’t mean that there is no activity going on. Keeping up with political and economic news during the holidays can help traders stay informed about potential market developments and profit from them.
Martin Luther King Jr. Day was first declared a federal holiday in 1986, but it wasn’t until 1998 that the stock market began closing on this day.
Historically, the market has had an average 0.2% gain on the trading day before the holiday and a 0.2% loss on the following trading day.
According to Dow Jones Market Data, the S&P 500 and the Dow have had negative average returns for three of the four trading sessions in the post-holiday week: Tuesday, Thursday, and Friday.
Read More: 2023 Economic Forecast-Recession Very Likely
In conclusion, it is important to keep an eye out for any potential holiday effects in the stock market following Martin Luther King Jr. Day.
Historically, the market has seen decreased trading volume and increased volatility during this time, which can provide opportunities for traders looking to make quick gains.
However, it’s also crucial to stay informed about political and economic developments as they can impact stock prices even during holiday periods. Careful monitoring of the market this week can help traders navigate any potential holiday effects. Visit Stock Target Advisor to find out the Top Stocks!