It’s been a fantastic year for the market, as the S&P 500 and Nasdaq 100 are up by about 25% and 55%, respectively. With the end of the year ticking closer, many investors are wondering if the stock market will be closed on New Year’s Day or Jan. 1, 2024.
Both the New York Stock Exchange (NYSE) and the Nasdaq Exchange recognize Jan. 1 as a holiday. As a result, the market will be closed on that day. After that, the next holiday closure will be on Jan. 15 in light of Martin Luther King Day and then on Feb. 19 for President’s Day.
2024 will be a pivotal year for stocks as President Joe Biden is set to run for re-election. On top of that, the Federal Reserve is expected to cut interest rates. Let’s get into the details.
Is the Stock Market Closed for New Year’s Day 2024?
According to The Carson Group’s Chief Market Strategist Ryan Detrick, the S&P 500 has never had a negative year in an election year when a new President is elected. Donald Trump’s election year saw the market rise by 16.3%, while Barack Obama’s election year resulted in a gain of 13.4%.
Furthermore, Detrick also shared another encouraging statistic for 2024. When the S&P 500 records a 10% or higher gain in November and December, the returns for the following quarter and year have always been positive. In fact, the average following yearly return for when this occurs is a significant 19.5%! While December is not yet over, today is the last trading day of the year, and the index has been up by over 12% since Nov. 1.
Fundstrat’s Tom Lee, known for his optimistic view on the market, had the most accurate 2023 S&P 500 Wall Street analyst price prediction of 4,750. For 2024, he expects the index to close at 5,200, implying gains of about 9% from current prices.
“The plurality of equity investors expect an inevitable recession as Fed hikes until it breaks something. But if above assessment [falling inflation, end of rate hikes] is correct, a ‘soft landing’ is the highest probability,” said Lee.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
