Following the recent stock market holiday in the US on Thursday, November 27, in observance of Thanksgiving, many investors are seeking clarity on trading schedules for today, November 28. On this Black Friday, the US stock market remains open, but it should be noted that trading will occur only during a shortened session. The markets are set to operate from 8:00 PM to 12:30 AM IST.
Traditionally, the period starting the Wednesday before Thanksgiving and extending through the week after Black Friday has shown positive performance for the S&P 500. According to Barron’s, the index has historically recorded gains during this timeframe, with a rise of 1.5% noted last year. In 2023, the S&P 500 increased by 0.8%, while in 2022, it rose by 1.1%. This pattern underscores a rebound after a decline of 3.5% in 2021 due to the pandemic.
Black Friday, although a holiday in the stock trading realm, has gained a reputation as one of the most vibrant shopping days of the year in the US. Originally deriving its name from the mid-20th century when Philadelphia’s streets became bustling with tourists ahead of the annual Army-Navy football game, this shopping phenomenon has now spread globally, reaching markets such as India.
Looking ahead, investors should note that another abbreviated trading session will occur in December due to Christmas Eve, followed by a complete market closure on Christmas Day.
Market trends leading up to the Thanksgiving holiday indicated a positive trajectory, with the US stock markets closing higher for four consecutive days as of Wednesday. This upward momentum was buoyed by anticipations of a potential interest rate cut from the US Federal Reserve at their upcoming December meeting. The S&P 500 Index finished 0.7% higher, while the Nasdaq 100 Index saw an increase of 0.87%.
However, November has presented its own set of challenges for the market, with both the S&P 500 and Nasdaq 100 pulling back from their record highs achieved in late October. Reports indicate that indices are at risk of breaking a streak of monthly gains, largely attributed to a selloff in artificial intelligence stocks amidst growing valuation concerns.
In light of these developments, investors are urged to approach trading decisions with caution and to seek advice from certified financial experts, as market conditions can fluctuate rapidly and individual circumstances vary significantly.
