Presidents Day is set to take place on Monday, February 17, 2025. It’s a federal holiday that will see many financial institutions and government offices closed.
The day’s activities will be closed by major institutions, such as banks, the stock exchange, and the post office, but retail stores, restaurants, grocery shops, and other businesses that are open for business on a regular basis.
The holiday can cause logistical problems for investors, traders and consumers. This is especially true in the financial market and post services.
New York Stock Exchange and Nasdaq remain closed. All equity trading will be halted. US bond markets are also expected to suspend trading for the day in accordance with federal holidays.
The major banks and postal offices are not operating, causing delays in transactions and delivery across the nation.
What day is Presidents Day celebrated?
Presidents Day is observed in the US on the third week of February. It was originally created to celebrate George Washington’s 22nd birthday.
It evolved over time to include all US Presidents including Abraham Lincoln whose 12th February birthday is celebrated.
In 1971, the Uniform Monday Holiday Act was passed and this holiday became a Monday-only event. This created a longer weekend for both workers and business owners.
Presidents Day is widely known as a day for discounts and sales in retail, but it has primarily an impact on government services, the financial markets and post operations. Banks, stock exchanges and federal offices are closed.
Presidents Day: Stock markets closed
Financial institutions have observed federal holidays for many years, and the Presidents Day stock market closure is no exception.
On 17 February the NYSE and Nasdaq won’t open, halting all trading that day.
Investors will have to make plans in advance, since they will not be able to purchase or sell stock until the markets open on Tuesday 18th February.
The US Bond markets will be halted, as well. This includes those run by Securities Industry and Financial Markets Association.
The market will be closed on Good Friday, Thanksgiving and other holidays.
After Presidents Day, the next holiday market will be Good Friday (18 April), followed by Memorial Day.
The timing of the holidays is important for traders and analysts as they occur during a period when financial markets are volatile.
Investor sentiment is often influenced by the earnings announcements of corporations and Federal Reserve statements in February.
As markets react to the news and developments of the weekend, they may be more active on Tuesday.
Delays in transaction and mail service at banks and post offices
On Presidents Day as well, financial institutions across Canada will close their doors.
In-branch banking will be discontinued by major banks including JPMorgan Chase Bank of America Wells Fargo Citibank and PNC Bank.
The ATMs will remain open, and customers will have online access. However, transactions that require in-person help will not be processed until Tuesday.
The US Postal Service will close its post offices and suspend the delivery of mail for consumers who rely on the postal service.
Private couriers such as UPS and FedEx continue to provide services.
UPS Stores will be open as usual, however deliveries made using UPS SurePost or UPS Mail Innovations could experience delays because of the USPS shutdown.
The holiday can be a logistical challenge for businesses that rely on financial and postal services.
Before the weekend, you will have to complete any payroll processing, bank transactions, or wire transfers that need in-person confirmation.
Presidents Day and the financial calendar
Presidents Day is the first federal holiday that will affect financial markets by 2025.
Although many Americans view it as an extended weekend, businesses and financial professionals must take into account the potential effects of a market shutdown.
Trading volumes are historically lower the Friday prior to the holidays, but they spike when the markets open on Tuesday.
Tax season also coincides with the holiday, so those who file early returns and need help from their banks or post offices may face slight delays.
IRS processing time is not affected, however individuals who rely on paper documents or mail-in forms may have to change their plans.
The financial calendar shows that there will be additional closures of the markets, such as Good Friday, in April, and Independence Day, in July.
Investors, traders and companies managing financial operations should be aware of these scheduled pauses.
This article Presidents Day 2020: Stock market, banks and post offices close for federal holiday first appeared on The ICD
