Thanksgiving Day in the USA: history of the holiday, market closure and impact on global investors
Thanksgiving is one of the most significant national holidays in the US, celebrated annually on the fourth Thursday of November. In 2024, it falls on 28 November. This day not only symbolises family values and thanksgiving for the harvest, but also has a notable impact on financial markets both in the US and around the world.
History and traditions of the holiday
The origins of Thanksgiving Day date back to 1621, when the first settlers from England, known as Pilgrims, celebrated a successful harvest in Plymouth Colony (now Massachusetts). They invited the local Wampanoag Indians to share a feast with them in gratitude for their help in developing the new land. This shared feast became a symbol of cooperation and mutual aid.
In 1863, President Abraham Lincoln declared Thanksgiving a bank holiday, setting it for the last Thursday in November. In 1941, the U.S. Congress approved the official date of the celebration - the fourth Thursday in November. Traditionally, on this day families gather around a festive table, the centrepiece of which is a roasted turkey. The holiday is accompanied by parades, sporting events and charity events.
Closing of financial markets on Thanksgiving Day
On Thanksgiving Day, all major financial markets in the United States, including the New York Stock Exchange (NYSE) and NASDAQ, are closed. This is because the holiday is an official day off, giving market participants the opportunity to spend time with family and loved ones. Closing markets on this day is a long-standing tradition, reflecting respect for the country's cultural values and traditions.
Impact on global investors
Closing U.S. markets on Thanksgiving Day has a noticeable impact on global financial markets:
Reduced trading activity: With the absence of trading in the U.S., transaction volumes in other global markets decline as many investors refrain from active trading in an environment of reduced liquidity.
Increased volatility: Reduced liquidity may lead to increased volatility in markets, especially those closely linked to U.S. assets.
Impact on commodity markets: The closure of commodity exchanges in the US, such as CME Group, leads to reduced activity in oil, gold and other commodity markets, which may affect their prices.
Pause in economic news: There are no important economic publications and corporate reports from the US on public holidays, which reduces the flow of information and may affect investment decisions.
Preparing for Black Friday
The day after Thanksgiving is Black Friday, a day of massive sales, which is traditionally considered the start of the Christmas shopping season. For the US economy it is a period of significant consumer demand, and for investors it is an indicator of the purchasing power of the population. Successful Black Friday sales can have a positive impact on the shares of retailers and e-commerce-related companies.
Thanksgiving is not only an important cultural holiday in the U.S., but also an event that impacts global financial markets. Investors should consider the closing of U.S. markets on this day and plan their trading strategies accordingly, taking into account possible changes in liquidity and volatility in global markets.
