Is the Stock Market Closed on Labor Day 2021?

The fall equinox might technically be a few weeks away. But the unofficial end of summer – that would be Labor Day – is upon us. That means a three-day weekend for investors and traders. The stock market is closed for 2021’s Labor Day, which falls on Monday, Sept. 6, this year.

For the record, the bond market is closed for the holiday, too.

Unlike some market holidays, however, there are no early hours ahead of Labor Day. The New York Stock Exchange (NYSE), Nasdaq Stock Market and bond market all have regular trading hours on Friday, Sept. 3.

Also note that a thin earnings calendar typically accompanies the Labor Day holiday.

A reminder: Labor Day is a longstanding holiday in the U.S. that celebrates the American worker. Oregon was the first state to adopt its celebration, in 1887. Seven years later, the U.S. made Labor Day a national holiday.

We’re hardly alone – dozens of other countries have a similar celebration called International Workers’ Day, but that falls on the first day in May.

The following is a schedule of all stock market and bond market holidays for 2021. Note that regular trading hours for the New York Stock Exchange (NYSE) and Nasdaq Stock Market are 9:30 a.m. to 4 p.m. Eastern on weekdays. The stock markets close at 1 p.m. on early-closure days; bond markets close early at 2 p.m.

2021 Market Holidays

Date Holiday NYSE Nasdaq Bond Markets*
Friday, Jan. 1 New Year’s Day Closed Closed Closed
Monday, Jan. 18 Martin Luther King Jr. Day Closed Closed Closed
Monday, Feb. 15 Presidents’ Day/Washington’s Birthday Closed Closed Closed
Friday, April 2 Good Friday Closed Closed Early close
(Noon)
Friday, May 28 Friday Before Memorial Day Open Open Early close
(2 p.m.)
Monday, May 31 Memorial Day Closed Closed Closed
Friday, July 2 Friday Before Independence Day Open Open Early close
(2 p.m.)
Monday, July 5 Independence Day (Observed) Closed Closed Closed
Monday, Sept. 6 Labor Day Closed Closed Closed
Monday, Oct. 11 Columbus Day Open Open Closed
Thursday, Nov. 11 Veterans Day Open Open Closed
Thursday, Nov. 25 Thanksgiving Day Closed Closed Closed
Friday, Nov. 26 Day After Thanksgiving Early close
(1 p.m.)
Early close
(1 p.m.)
Early close
(2 p.m.)
Thursday, Dec. 23 Day Before Christmas Eve Open Open Early close
(2 p.m.)
Friday, Dec. 24 Christmas Eve (Christmas Day Observed) Closed Closed Closed
Friday, Dec. 31 New Year’s Eve Open Open Early close
(2 p.m.)

* This is the recommended bond market holiday schedule from the Securities Industry and Financial Markets Association (SIFMA). This schedule is subject to change.

Stock Market Holiday Observations

When it comes to the stock and bond markets alike, if a holiday falls on a weekend, market closures are dictated by two rules:

  • If the holiday falls on a Saturday, the market will close on the preceding Friday.
  • If the holiday falls on a Sunday, the market will close on the subsequent Monday.

Stock and Bond Market Hours

The “core trading” stock market hours for the NYSE and Nasdaq are 9:30 a.m. to 4 p.m. on weekdays. However, both exchanges offer premarket trading hours between 4 and 9:30 a.m., as well as late trading hours between 4 and 8 p.m.

Bond markets typically trade between 8 a.m. and 5 p.m.

The stock markets close at 1 p.m. on early-closure days; bond markets close early at 2 p.m.

Source: kiplinger.com

5 Things You Must Do to Prepare for a Stock Market Crash

The S&P 500 index is hovering around record highs as of August 2021. But plenty of things could disrupt the economy, like the delta variant of COVID-19 and the supply shortages that are making prices of just about everything soar. With so much uncertainty, you may be worried that the stock market will crash again.

First, the bad news: Yes, the stock market will crash again at some point. Stock market crashes are completely normal. The stock market has crashed 21 times — defined as a drop of 20% or more from its peak — since the Wall Street crash of 1929. It’s inevitable that it will crash at some point. We just don’t know when.

Now the good news: Historically, though, the stock market has always recovered over time.

If you start preparing now, your finances will bounce back next time the market crashes as well.

5 Ways to Prepare for a Stock Market Crash

The problem is that many people don’t start thinking about how to prepare for a stock market crash until after the market has already crashed. But if you take action now, you’ll mitigate the damage later.

1. Don’t Try to Time Your Way Out

Some people attempt what’s known as market timing, which means they try to cash out their investments before the market crashes. Or they don’t invest when stocks are surging because they think the market is overpriced.

The problem is that even the best minds on Wall Street can’t predict the market’s highs and lows. The stock market could stay hot for a long time. If you avoid investing out of fear or because you’re hoping to invest when the market dips, you could miss out on significant gains.

A better strategy is to practice dollar-cost averaging, which means you invest a set amount at regular intervals. If you invest in a 401(k) or a similar employer-sponsored retirement account, you’re already doing this since you’re investing money from each paycheck. The same goes for if you automatically invest each month in a Roth IRA or traditional IRA. Over time, dollar-cost averaging tends to produce better returns than trying to time the market.

2. Build Your Emergency Fund

An emergency fund is the best investment you can make if you’re worried about a stock market crash. You need a cash cushion in case you’re hit with a big expense or a job loss right after the market has tanked. Otherwise, you may have to dip into your 401(k) or other investments before they’ve had time to recover. If you’re younger than 59 ½, you could also face early withdrawal penalties.

If you don’t have at least a six-month emergency fund, make building one a high priority. Of course, this is a long-term goal that may take years to achieve. But any safety net you’re able to build is a win.

Try to budget at least 10% of your paycheck for emergency savings. If that’s not doable or you want to speed up your progress, taking on a side hustle to build your reserves is a good strategy.

If you’re approaching retirement or you’ve already retired, it’s especially important to make sure you have ample cash reserves. An ill-timed crash can devastate your retirement plans by forcing you to sell investments before they’ve recovered or claim Social Security too early.

Consider meeting with a fee-based financial adviser if you’re retired or plan to retire in the next five years. They can help you determine how much cash you should have on hand and whether you have the right ratio of stocks vs. bonds.

3. Limit Individual Stocks to 5% of Your Portfolio

Maintaining a diversified portfolio is essential to weathering a stock market crash. If you invest in stocks of individual companies, try to limit any single investment to no more than 5% of your overall portfolio.

Whenever you invest in stocks, you risk losing money just because the market is down. But the risks of investing in individual stocks are greater compared to investing in index funds that move up and down with the overall stock market. For example, there’s the risk that one industry will be hit especially hard, as occurred with tech stocks during the dot-com crash, and risks specific to a company, like poor management decisions or increased competition.

4. Rethink Risky Investments

If you’ve made a lot of money on risky investments like meme stocks (think GameStop and AMC), penny stocks or Dogecoin, think very carefully about whether it’s time to sell. There’s nothing wrong with investing a small amount of money in a high-risk investment, provided that you have adequate savings and you don’t have high-interest debt. But these investments are highly volatile, so your losses could be especially steep.

5. Decide Now if You Want to Invest More

A stock market crash can be a great opportunity to invest more if you have the stomach for it. Provided that you have a solid emergency fund and you’re investing for retirement, you could set aside extra money to invest when the stock market crashes.

Because it’s natural to panic when stocks nosedive, make a plan now. For example, you could decide that you’ll invest $X extra if the S&P 500 index falls below 4,000. Or if there’s a stock you want to buy, you could decide that you’ll buy it if the price drops below a certain level.

This may seem counterintuitive to what we said about not trying to time the market. To be clear, saving money to invest when stock dips is a strategy you should use only if you’re already dollar-cost averaging by investing for retirement. But if your finances are in good shape and it fits with your risk tolerance, it’s OK to prepare for some bargain hunting next time stocks crash.

What Should You Do When the Market Crashes?

Probably nothing. A stock market crash is panic-inducing, but it’s best not to make major decisions about money from a place of fear. Keep investing in your 401(k) after a crash unless your financial situation has drastically changed. Avoid checking your account daily.

It’s never pleasant to see your net worth nosedive. But if you don’t sell your investments at a loss, you really haven’t lost money. With time and patience, your finances will eventually recover.

Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. 

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Source: thepennyhoarder.com

Making Financial Progress is Motivating

Setting goals is a crucial part of your journey as you work toward financial freedom. By setting goals tailored around your lifestyle, you can improve your financial habits, keep track of your financial progress, and identify expenses you can cut back down on, while making sure to acknowledge and celebrate each and every win along the way. 

To learn more about how our Minters are achieving their financial goals, we reached out to everyday Mint users, just like you, to hear their stories. Meet Samuel, a Mental Health Case Manager from Vermont, who was kind enough to share his #EmpowerMint story with us. Check it out: 

I began teaching myself about finances around the age of 20. At the time, I invested my life savings into the stock market. This was back in 2008 when the economy crashed and I saw a number of opportunities to buy good companies’ stock at low prices. Additionally, by the age of 20, I had already worked four different jobs and started my own lawn mowing and eBay reselling business.

In July 2019 I started using Mint to keep track of all of my accounts, expenses, and to ultimately expedite the growth of my net worth. I had a list of goals that I wanted to achieve, namely; I wanted to have surgery, buy a house, and earn passive income to help support a future family. With the help of Mint, I have completed the first of the three and am getting close to having enough for a down payment on a house.  

Mint helped me achieve my first financial goal of having enough savings and investments to comfortably have back surgery. I had been postponing the surgery for over 10 years, unsure of what would happen if I didn’t feel well enough to return to work right away. I didn’t want to live in poverty so I saved up and built myself a safety net. Thankfully, I am recovering quickly and plan to return to work next month. With the help of Mint, not only was I able to achieve this goal, but I was also able to nearly double my net worth within the span of one year.  

These days, I use Mint daily, sometimes even multiple times in the day. I primarily use the app to track my financial information across all accounts, in order to make sure I am always growing and moving towards both my financial and life goals. The sense of making progress is motivating! Additionally, I use Mint to watch my expenses within each credit card to make sure I am being disciplined and to avoid any fraudulent charges.

I enjoy browsing the app and came across the plethora of articles on the blog that are relevant to my interests. I most enjoyed the one about starting a business, as I’ve always been interested in owning my own someday.

My favorite feature of Mint is being able to track my net worth daily, so I can keep track of my overall financial picture across all accounts. Being able to see the individual transactions within each account saves time having to log in to numerous separate websites. I also love the sense of community in the MintFAM platform!

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Source: mint.intuit.com