The stock market is closed on Labor Day
The U.S. stock market does not trade on Labor Day. The New York Stock Exchange (NYSE) and the NASDAQ are both closed on the first Monday in September, which is when the federal government observes Labor Day. This means you cannot buy or sell stocks, mutual funds, or exchange-traded funds (ETFs) on that day through normal market channels.
If you try to place a trade on Labor Day, your brokerage will reject it or hold it until the market reopens on Tuesday. Some brokerages allow you to place orders after hours or before the market opens, but those orders will not execute until the next trading day.
Key Takeaways
- The stock market closes on Labor Day, the first Monday in September, and does not reopen until Tuesday.
- You can still place orders on Labor Day through most brokerages, but they will not execute until the market reopens.
- After-hours trading is not available on market holidays, so you cannot trade stocks on Labor Day evening either.
- The market also closes on other federal holidays including Thanksgiving, Christmas, Independence Day, and New Year's Day.
What happens to your existing positions on Labor Day
Your stocks, bonds, and other holdings remain in your account on Labor Day. The market does not liquidate positions or reset your portfolio just because the market is closed. If you own 100 shares of a company on Friday, you still own those 100 shares on Tuesday when the market reopens.
However, news and events that happen over the weekend or on Labor Day itself can affect stock prices when trading resumes on Tuesday. A company announcement, economic report, or world event that occurs while the market is closed will be reflected in Tuesday's opening price, not in a price change on Monday.
When you can and cannot trade on Labor Day
Regular market hours do not operate on Labor Day. The NYSE and NASDAQ both close at their normal time on Friday and do not reopen until 9:30 a.m. Eastern Time on Tuesday. Most retail brokerages follow the same schedule.
Some brokerages offer extended hours trading — before the market opens at 9:30 a.m. or after it closes at 4 p.m. — but these sessions are not available on market holidays. You cannot trade during extended hours on Labor Day. If you place an order during extended hours on Labor Day, it will sit in your account until the regular market opens on Tuesday morning.
Other market holidays that work the same way
Labor Day is one of nine days per year when the U.S. stock market closes completely. The full list includes New Year's Day (January 1), Martin Luther King Jr. Day (third Monday in January), Presidents' Day (third Monday in February), Good Friday (the Friday before Easter), Memorial Day (last Monday in May), Juneteenth (June 19), Independence Day (July 4), Thanksgiving Day (fourth Thursday in November), and Christmas Day (December 25).
On each of these days, the market is closed and you cannot trade. If a holiday falls on a weekend, the market is closed on the nearest weekday instead — for example, if Christmas falls on a Saturday, the market closes on Friday instead.
How to plan ahead if you want to trade before Labor Day
If you know you want to make a trade before the long weekend, place your order on Friday before the market closes at 4 p.m. Eastern Time. This gives you time to confirm the trade executed and to see the final price you paid or received.
If you wait until Monday morning thinking you can trade before the market opens, you will not be able to. Your order will not execute until Tuesday at the earliest. Some traders place orders on Friday afternoon specifically to avoid the uncertainty of waiting until after a holiday weekend.
What to do if you need to trade on a market holiday
If you absolutely need to trade on Labor Day, you have limited options. Some brokerages offer cryptocurrency or forex trading on holidays, but these are different markets with different rules and different risks than the stock market. Stocks themselves do not trade on Labor Day under any circumstances through a standard brokerage.
If you are concerned about a position you hold and the market is closed, you can contact your brokerage to ask about your options, but they cannot execute a stock trade for you on a holiday. The only real solution is to wait until the market reopens on Tuesday.
Frequently Asked Questions
Can I place a stock order on Labor Day and have it execute that day?
No. Any order you place on Labor Day will not execute until the market reopens on Tuesday. Some brokerages let you place the order, but it sits in a queue until trading resumes. Others will not let you place the order at all on a holiday.
Will my stocks lose value on Labor Day if the market is closed?
Your stock holdings do not change in value on Labor Day itself because no trading occurs. However, if news breaks over the weekend or on Monday that affects the company, the stock price will jump or drop when the market opens on Tuesday morning.
What if I forget to sell a stock before Labor Day and the price drops on Tuesday?
You will not be able to sell until the market opens on Tuesday. If the price has dropped, you will have to decide whether to sell at the lower price or hold and wait for a recovery. This is why many traders place their orders on Friday if they know a holiday is coming.
Do bonds and mutual funds trade on Labor Day?
Mutual funds do not trade on Labor Day — they are priced once per day after the stock market closes, so they follow the same holiday schedule. Some bonds trade in over-the-counter markets that operate on holidays, but most retail investors buy bonds through brokerages that close on Labor Day.
Is the bond market open on Labor Day?
The Treasury bond market and most corporate bond trading close on Labor Day, though some institutional traders can access over-the-counter bond markets. For most people with a brokerage account, bonds are not tradeable on Labor Day.