The US stock markets are getting ready for a long weekend, and similarly to Indian markets which will be closed on Friday November 15, 2024 due to Guru Nanak Jayanti. This holiday when added to the regular weekend closure, will mean a three consecutive day break for both, traders and investors. It is understood that the markets will be back to work from Monday, November the 18th, 2024 in normal business as the break comes to an end.
The timing of this market holiday is so perfect especially when the world market is still experiencing high fluctuation. Domestic markets started correction in India on Wednesday, 13 November 2024, as key benchmarks Nifty and even Nifty Midcap 100 and Nifty Smallcap 100 were down over 10 percent below recent record highs. This downturn has been blamed on increased domestic inflation, a solidifying dollar, and poor earnings releases.
Indian markets correction is interesting as this is only the second time after the Covid-19 selloff in March 2020, when the Nifty entered in correction zone. This situation has given some investors and analysts food for thought about how equity markets may fare in the short term not only in India but globally.
Markets have also been struggling in the United States some of which are as follows; Political instability, a persistent discussion about interest rate policies and inflation expectations have all placed a lot of pressure on the market. The long weekend comes in a period when investors look keenly at economic fundamentals and corporate results with calmer or more turbulent waters ahead.
There is likelihood of trading to surge when US markets re-open on Monday due to inactivity for a long time. Businessmen and especially traders and investors, are going to use this time for the evaluation of their plans and stock positions based on recent shifts on the market and new data on the economy.
Nonetheless, it should be acknowledged that even though stock markets, equities in particular, will be closed, other financial markets, notably forex and commodities, may be available, albeit in conditions of less liquid. This could lead to high fluctuations in these markets, particularly during the period of closure of the exchange, due to some important announcements of economic or geopolitical nature.
The extended market closure also gives the investors an opportunity to think of other factors in the market. Market focus has shifted towards fresh information releases and words coming from central banks regarding future policy decisions. This may inhibit stock trading since pause enables one to balance on such facets and their prospects of influencing trends in the market.
As markets awaken next week all the market participants and spectators will be anxiously waiting to see how the markets react to all the news & data that had emerged during the longer than usual vacation. The initial several trading days will probably have significant influence on further trading for the remainder of the month and, possibly, the year-end trading period.
Thus, the period of the market’s closure gives traders/investors a brief break, during which there is huge market fluctuation and uncertainty. Market reactions and any changes in the trend for both the US and global markets will be observed and followed, particularly during the trading next week, as the trading will resume.
