Thanksgiving in the USA: The History of the Holiday, Market Closures, and Impact on Global Investors
Thanksgiving is one of the most significant national holidays in the USA, celebrated annually on the fourth Thursday of November. In 2024, it falls on November 28. This day not only symbolizes family values and gratitude for the harvest but also has a noticeable impact on financial markets, both in the USA and globally.
The History and Traditions of the Holiday
The origins of Thanksgiving trace back to 1621, when the first settlers from England, known as Pilgrims, celebrated a successful harvest in Plymouth Colony (now Massachusetts). They invited local Native Americans from the Wampanoag tribe to share in the feast as a gesture of gratitude for their assistance in adapting to new lands. This joint feast became a symbol of cooperation and mutual support.
In 1863, President Abraham Lincoln declared Thanksgiving a national holiday, establishing it on the last Thursday of November. In 1941, the U.S. Congress confirmed the official date of celebration - the fourth Thursday in November. Traditionally, families gather at the festive table, with roast turkey as the centerpiece. The holiday is accompanied by parades, sporting events, and charitable activities.
Market Closures on Thanksgiving Day
On Thanksgiving Day, all major U.S. financial markets, including the New York Stock Exchange (NYSE) and NASDAQ, are closed. This is because the holiday is an official day off, allowing market participants to spend time with family and loved ones. The closure of the markets on this day is a long-standing tradition that reflects respect for the cultural values and traditions of the country.
Impact on Global Investors
The closure of the American markets on Thanksgiving has a significant impact on global financial markets:
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Reduced trading activity: With no trading occurring in the USA, volumes on other global markets decrease as many investors refrain from active actions in a low liquidity environment.
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Increased volatility: A drop in liquidity can lead to heightened volatility in the markets, especially in those closely linked to U.S. assets.
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Impact on commodity markets: The closure of commodity exchanges in the USA, such as CME Group, leads to a decrease in activity in oil, gold, and other commodity markets, which may reflect on their prices.
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Pause in economic news: On the holiday, there are no significant economic publications or corporate reports from the USA, which reduces the flow of information and may impact investment decision-making.
Preparation for "Black Friday"
The day after Thanksgiving is "Black Friday" - a day of massive sales traditionally considered the start of the Christmas shopping season. For the U.S. economy, this is a period of significant consumer demand, and for investors, it serves as an indicator of the purchasing power of the population. Successful sales on "Black Friday" can positively influence the stocks of retailers and e-commerce companies.
Thanksgiving is not only an important cultural celebration in the USA but also an event that influences global financial markets. Investors should account for the closure of the American markets on this day and plan their trading strategies accordingly, considering potential changes in liquidity and volatility in the global markets.
