Reminder: US markets are closed for Labor Day - what traders need to know

AI summary

<p></p><p>It'll be a quieter session up ahead in the US today as we will see key market closures in observance of the Labor Day weekend. Both the NYSE and Nasdaq are shut, so there will be no regular trading in US equities today. Besides that, the options market is also closed for the holiday with normal trading only resuming on Tuesday tomorrow.</p><p></p><p class="text-align-justify" style="text-align: justify;">In addition, the bond market is effectively closed as well. So, that means all dollar-denominated fixed-income securities such as Treasuries, mortgage-back securities, high-yield corporate bonds, municipal bonds and parts of the money market will be shut.</p><p class="text-align-justify" style="text-align: justify;">Why does this matter?</p><p class="text-align-justify" style="text-align: justify;">To put short, when US cash equities and Treasuries are absent from trading, it means that liquidity across global markets is typically thinner on that particular day. That will be exacerbated further during North American trading hours of course.</p><p class="text-align-justify" style="text-align: justify;">So, what exactly does that mean? It means that price movements can be exaggerated by lighter trading volumes at times, or perhaps even see markets simply drift with little to no conviction.</p><p class="text-align-justify" style="text-align: justify;">In other words, today's price action may offer up less informational value than a normal trading day - especially durin