Will Stock Markets be working on New Year's Eve and New Year's Day? Details explored

Amidst the final trading week of the year, Stock Markets are assessing their gains and losses for 2024. However, the larger question is whether the financial centers would remain open or closed for New Year’s Eve and New Year’s Day.

According to a report by The Economic Times, the Stock Markets will operate as per the usual working hours on December 31, 2024, i.e. from 9:30 am to 4 pm Eastern Time. However, the Stock Markets will remain shut on January 1, 2025.

Meanwhile, the US Bond Markets will observe an early close time, i.e. 2 PM on December 31, 2024.

Similarly, in other places like London and Hong Kong, the exchanges will cease operations early on New Year’s Eve. In Japan, no trading will be carried out tomorrow. The Stock Markets will resume usual trading on January 2, 2025.

As per Yahoo Finance, the present market situation felt too happy, but Brian Jacobsen, Annex's Chief Economist, and Strategist had an analysis for 2025. He explained that Annex's investment committee observed trends like the "Santa Claus Rally," where markets are historically positive during the last five trading days of the previous year and the first two of the new year.

While this optimism is encouraging, he warned that reality often brings a more grounded perspective once the rally ends. Jacobsen added:

“One of the big risks as we go into 2025 is really thinking about, you know, FDR, his famous speech about we have nothing to fear but fear itself and so if that sentiment changes, if all the things that have propelled the market higher since the election.”

He continued:

“Prospects of deregulation, you have the extension of the tax cuts and jobs act. If those things maybe look like they are not a slam dunk or they might be pushed out to a later date, that could be a dislocation opportunity that we are looking for.”

Jeffrey Hirsch said the odds were in favor of Stock Market’s Santa Claus Rally

On December 25, 2024, while conversing with the media outlet, Stock Traders Almanac Editor-in-chief Jeffrey Hirsch said the odds were still in favor of the Santa Claus Rally as he said it was an important time of the year check on the market.

Calling the recent selling of the month ‘typical,’ he said it took some froth off the market, which set up the potential for the Santa Claus Rally. He added:

“It’s something I am watching to see if the bull market’s got some legs and if we get some breadths, some broadening of the market and a positive Santa Claus Rally, that’s the first step to confirming the bull’s got room to run.”

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As per the latest updates, the Nasdaq Composite has risen over 30% in 2024, outpacing the S&P 500's 25% increase and the Dow Jones Industrial Average's 14% gain in the Stock Markets. As per Yahoo Finance, housing market data and manufacturing activity updates are expected to provide a calm economic outlook.

A positive performance during this Santa Claus Rally often signals a strong January and a 10.4% annual return for the Stock Markets. Conversely, a negative period typically results in a lackluster January and an average yearly gain of 5%. So far, the S&P 500 is down just under 0.1% during this year’s rally, which concludes on January 3, 2025.

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