Is the Stock Market Open on Martin Luther King Jr. Day?
Learn the operational status of major financial markets on Martin Luther King Jr. Day and its effects on trading and financial services.
Martin Luther King Jr. Day, observed annually on the third Monday in January, stands as a significant federal holiday across the United States. This day commemorates the life and legacy of a prominent civil rights leader. Its observance impacts various sectors, including the financial markets, which generally align their operations with federal holiday schedules.
Stock Market Status on Martin Luther King Jr. Day
Major U.S. stock exchanges, including the New York Stock Exchange (NYSE) and Nasdaq, are closed for trading on Martin Luther King Jr. Day. For example, in 2025, both the NYSE and Nasdaq will be closed on January 20th.
The closure extends beyond stock markets to include bond markets. The Securities Industry and Financial Markets Association (SIFMA) recommends a full market close for U.S. dollar-denominated fixed income securities. This encompasses government securities, corporate bonds, and money market trading.
Why Markets Observe Martin Luther King Jr. Day
Financial markets close on Martin Luther King Jr. Day because it is a federal holiday. Financial market holiday schedules often correspond with federal observances to foster consistency across the financial system and ensure widespread recognition of national holidays. This alignment also allows financial institutions and participants to honor nationally recognized events, providing a unified approach to operations within the broader economic framework.
Other Financial Institutions and Martin Luther King Jr. Day
Beyond the stock and bond markets, most U.S. banks, including major banks and Federal Reserve offices, are also closed on Martin Luther King Jr. Day. While Automated Teller Machines (ATMs) and online banking services remain accessible, physical bank branches do not operate.
The closure of banks and the Federal Reserve means that certain banking transactions, such as wire transfers and check processing, may experience delays. These services are typically not processed on federal holidays. Funds deposited on the holiday may show as pending until the next business day.
Trading Resumption and Weekend Observance
Following Martin Luther King Jr. Day, trading on U.S. stock and bond markets typically resumes on the next business day. For example, if the holiday falls on a Monday, markets will reopen for regular trading on Tuesday.
If Martin Luther King Jr. Day falls on a Saturday, the holiday is observed by market closures on the preceding Friday. Conversely, if the holiday occurs on a Sunday, the observance shifts to the following Monday. This adjustment ensures that the holiday is recognized with a non-trading day, maintaining a consistent schedule for market participants.