You're sitting there on a random Monday in October. Your coffee is hot, your monitors are glowing, and you’re ready to execute a trade. But then you notice something weird. The pre-market data looks frozen. Or maybe you're expecting a big bank transfer to clear so you can buy that dip, but the balance hasn't budged.
It happens every year.
The confusion stems from a weird quirk in the American calendar. We have days where the post office is closed, but the world of high-frequency trading is screaming along at full speed. So, is Columbus Day a market holiday?
The short answer is no. But the long answer? It’s a bit more annoying than that.
While the New York Stock Exchange (NYSE) and the Nasdaq stay wide open for business, the bond market takes the day off. This creates a strange "split-screen" reality for the financial world. You can buy 100 shares of Apple, but you can’t easily settle a complex debt instrument or expect your local Chase branch to be open for a wire transfer.
The Great Disconnect: Stocks vs. Bonds
If you're looking for a day off, you won't find it on the floor of the NYSE. For equity traders, Columbus Day—also increasingly recognized as Indigenous Peoples' Day—is just another Monday or Friday. The opening bell rings at 9:30 AM ET, and the closing bell rings at 4:00 PM ET.
Why the split? It comes down to who runs the show.
The stock exchanges are private entities. They want volume. They want fees. Unless it’s a major federal holiday like Christmas or Thanksgiving, they generally prefer to stay open. On the flip side, the bond market is heavily influenced by the Securities Industry and Financial Markets Association (SIFMA). SIFMA follows the Federal Reserve’s holiday schedule.
Because Columbus Day is a federal holiday, the Fed takes a breather.
When the Fed is closed, the "plumbing" of the financial system slows down. This is why you'll see a dip in trading volume on these days. Institutional investors, the big whales who move markets, often stay home because they can't settle trades in the fixed-income space. Without the bond market providing cues on interest rates and Treasury yields, stock traders are basically flying with one eye closed.
Banks are Closed, but the Ticker Keeps Running
Think about your bank. If you walk up to a Bank of America or a Wells Fargo on Columbus Day, the doors are probably locked.
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This is where things get tricky for the average retail investor.
Even though you can log into your E*TRADE or Fidelity account and click "buy," the movement of actual cash is stalled. If you sell a stock on Columbus Day, the settlement period—which is now T+1 (trade date plus one day) in the US—might feel a bit sluggish because banks aren't processing the backend movements.
Honestly, it’s a bit of a ghost town vibe.
I remember talking to a floor trader a few years back who described these "split" holidays as the most boring days of the year. You’re there. You’re working. But the massive liquidity provided by the big banks just isn't there. It’s like throwing a party and realizing the guy who brings the music (the bond market) decided to stay in bed.
A Quick Look at the Federal Calendar
To understand why people keep asking is Columbus Day a market holiday, you have to look at the list of days where the government shuts down. The U.S. Office of Personnel Management (OPM) lists Columbus Day as one of the eleven permanent federal holidays.
- New Year’s Day
- Martin Luther King, Jr. Day
- Washington’s Birthday (Presidents' Day)
- Memorial Day
- Juneteenth National Independence Day
- Independence Day
- Labor Day
- Columbus Day
- Veterans Day
- Thanksgiving Day
- Christmas Day
Notice the pattern? Most of these are "full" market holidays. But Columbus Day and Veterans Day are the outliers. On Veterans Day, the stock market stays open while the bond market and banks close. It’s a weird, inconsistent middle ground that catches people off guard every single October and November.
Trading Strategy: Should You Even Bother?
If the markets are open, should you be trading?
Low liquidity is a double-edged sword. When there are fewer people buying and selling, price swings can be more dramatic. A relatively small sell order that wouldn't move the needle on a Tuesday in July might cause a mini-spike or a dip on Columbus Day because there aren't as many "market makers" sitting at their desks to absorb the impact.
Day traders sometimes love this. Most people? They should probably stay away.
History shows us that volume on Columbus Day is significantly lower than the October average. Without the direction provided by the 10-year Treasury yield, which is frozen for the day, the stock market often just drifts. It’s "sideways" price action at its finest. If you're looking for a breakout, you're probably looking at the wrong day.
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Also, consider the international perspective.
The US is one of the few places observing this specific holiday. Markets in London, Tokyo, and Hong Kong are operating at full tilt. This can create weird arbitrage opportunities or sudden moves in US-listed tech stocks if something happens overseas, as the domestic "support" from US banks isn't there to stabilize things.
The Evolution of the Holiday
We can't talk about this day without acknowledging the shift toward Indigenous Peoples' Day. While the financial markets don't care about the name—they care about the "Fed" schedule—the cultural shift is real. Some corporations have moved to recognize the day as a full floating holiday, meaning even fewer people are at their desks.
In the future, will the NYSE eventually give in and just close?
Probably not.
The trend in finance is toward 24/7 trading. Look at crypto. Look at the overnight sessions on Robinhood. The idea of the "market closing" is becoming an old-school concept. If anything, we might see the bond market eventually move toward staying open rather than the stock market closing.
But for now, we're stuck in this awkward "semi-open" state.
Real-World Impact on Your Portfolio
Let's say you have a limit order set for a specific price. On Columbus Day, because of that low liquidity I mentioned, you might see "slippage." This is when your order is filled at a price slightly different than what you expected because the "spread" (the gap between what a seller wants and a buyer offers) has widened.
It’s subtle. You might lose a few cents per share. But for a large position, that adds up.
Another thing to watch out for is economic data releases. Usually, the government avoids dropping huge "market-moving" reports—like the Jobs Report or CPI—on federal holidays. So, you aren't going to get hit with a massive inflation surprise while the banks are closed. The Bureau of Labor Statistics and the Census Bureau are at home eating BBQ or sleeping in.
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What stays open?
- NYSE and Nasdaq: Regular hours.
- Crypto Markets: Always open, 24/7, doesn't care about Columbus.
- Futures: Most futures contracts (like S&P 500 E-minis) trade, but they might have an early close. You'll want to check the CME Group website for specific holiday hours each year.
- International Exchanges: Business as usual in Europe and Asia.
What stays closed?
- Bond Market: No Treasury trading.
- Federal Reserve: No wire transfers (Fedwire).
- Commercial Banks: Your local branch and most corporate offices.
- U.S. Postal Service: No mail delivery.
Why Investors Get Confused
I think the confusion lives in the "Bank Holiday" label. In the UK, a "Bank Holiday" means everything stops. In the US, we use "Federal Holiday" and "Bank Holiday" interchangeably, but our stock markets are the rebels of the system.
They stayed open during the aftermath of the 1918 pandemic (mostly). They stayed open through world wars. They don't like to close unless they absolutely have to.
If you're ever in doubt, just look at the calendar on the NYSE website. They are very transparent about their "Scheduled Closures." You'll see things like Good Friday (which isn't even a federal holiday, yet the markets close) and you'll see the absence of Columbus Day.
It’s an inconsistent mess. But it’s the mess we have to trade in.
Essential Actions for October Traders
Don't let the calendar catch you off guard. If you’re managing your own money, there are a few practical steps to take before the second Monday in October rolls around.
First, handle your liquidity needs the Friday before. If you know you need to move money from your brokerage to your checking account to pay a mortgage or a bill, do it early. Since the banking system is closed on Monday, that "transfer" button in your app isn't going to do much until Tuesday morning.
Second, check your open orders. If you have "Good 'Til Canceled" (GTC) orders sitting out there, remember that the low volume on Columbus Day can lead to "flash" movements. A momentary lack of buyers could trigger a stop-loss order that wouldn't have been touched on a high-volume day.
Third, use the day for research. Since the "noise" of the bond market is gone and the ticker is moving slow, it’s actually a great time to zoom out. Look at weekly charts instead of one-minute candles. Read those 10-K filings you've been putting off.
Lastly, don't expect fireworks. Most Columbus Days end with the S&P 500 moving less than 0.5% in either direction. It is, quite literally, the "waiting room" of the October trading month.
The markets are technically open, but the "soul" of the market is usually taking a long weekend. Plan your trades with that lack of energy in mind, and you'll avoid the frustration of a stagnant portfolio on a day when you thought you'd be making moves.
Keep an eye on the calendar, understand the difference between equity and fixed-income schedules, and always remember that in finance, "open" doesn't always mean "active."
Next Steps for Investors:
- Verify your broker's specific policy: While the NYSE is open, some small boutique firms might observe different hours or have limited support staff.
- Review your cash settlements: Ensure any trades made on the Friday before Columbus Day account for the bank holiday delay in fund availability.
- Check the CME Group holiday schedule: If you trade oil, gold, or index futures, check for "early close" times which often occur at 1:00 PM ET on federal holidays.