On January 9, the United States stock markets will close in observance of a national day of mourning in memory of the late President Jimmy Carter, maintaining a long-standing custom.
The US stock exchange will halt on January 9 in remembrance of the late President Jimmy Carter, as part of a national day of mourning. Nasdaq Inc. and the New York Stock Exchange (NYSE) have verified the suspension of trading on their respective US stock exchanges. CBOE Global Markets Inc. and the CME Group Inc., which operates equity and interest rate markets in the United States, have not yet disclosed their intentions.
The decision is consistent with a long-standing custom of suspending financial operations in the wake of the demise of a United States president. The longest-living president in the history of the United States was President Carter, who passed away on December 29 at the age of 100. The funeral of President George H.W. Bush was the most recent analogous closure, which took place on December 5, 2018.
In a statement, NYSE Group President Lynn Martin reflected on Carter’s legacy, stating, “Jimmy Carter, a farmer and family man, dedicated his life to public service and the defense of our freedom.”On the National Day of Mourning, the NYSE will close its markets in respectful remembrance of President Carter’s lifetime of service to our nation.
Lynn Martin also stated that the NYSE will maintain the US flag at half-staff during the mourning period. According to a recent Bloomberg report, economists contend that market closures are a necessary symbolic gesture during periods of national significance, despite their rarity.
In the past, financial institutions have temporarily suspended operations in response to events such as national emergencies, natural disasters, and significant historical events, such as the Wall Street explosion of 1920 and the terrorist attacks on September 11, 2001.
Market participants emphasize that these interruptions, despite their significance, typically have minimal long-term impacts on the broader economy or trading. Expectations are that markets will re-establish their typical volumes and liquidity following the one-day closure.
In 1865, the assassination of Abraham Lincoln initiated the custom of suspending commerce in the wake of a president’s death. The New York Times at the time characterized the news as causing “a sensation of horror and anguish that no other event in our history has ever stimulated,” with businesses ceasing operations as citizens gathered in mourning.
These closures provide a practical and symbolic respite, enabling the nation to contemplate the contributions of its leaders. Carter’s commitment to public service and humanitarian endeavors, in conjunction with his humble beginnings as a farmer and family man, have left an indelible impression on the nation.
The mortality of a president is an exception, despite the fact that markets rarely close down. Previous closures for events such as 9/11 underscored the importance of such delays in order to preserve stability and prevent financial chaos.
Ed Yardeni, a seasoned market analyst, cited the September 11 assaults as the reason for the markets’ decision to close down and prevent financial chaos. “No one was entirely certain whether there would be additional assaults.”
The closure on January 9 has served as a testament to the enduring relationship between Wall Street and moments of national reflection. Investors usually regard trading interruptions as disruptive; however, they anticipate a seamless return to normalcy upon the reopening of markets.
