It’s a shorter week for markets heading into Easter weekend, with US stock markets closing a day early, ending the trading week at the closing bell on Thursday, known as Maundy Thursday. (or Holy Thursday), with no trading of shares the following day, Good Friday. .
The start of Easter, a holiday of about a week, also coincides with Good Friday this year.
Bond markets, on the other hand, operate on a more abbreviated schedule, with trading ending Thursday at 2 pm ET. SIFMA, the trade association for stockbrokers, recommended that the market be closed on Friday.
But there will be a small amount of US economic data due out before noon on Friday, including monthly updates on New York state business conditions and an industrial production reading for March.
In Europe, stock exchanges will be closed on Good Friday, April 15, until Easter Monday, April 18, reopening on Tuesday.
good friday background
The big focus for investors (and households) heading into the long holiday weekend has been the cost of living, as the rate of US inflation includes housing, fuel, groceries, cars and more.
Watch: Maximum inflation? The worst may be over, but Americans will likely continue to pay a heavy price.
The Russian invasion of Ukraine six weeks ago has increased inflation problems around the world, with US oil futures CL.1,
this week again above 100 dollars a barrel.
President Joe Biden said Tuesday that he will allow high-ethanol gasoline blends to be sold this summer, which is typically a busy driving season, to help offset inflation, which in the United States is at its highest level since 1981.
What impact does Easter have on the stock market?
This Easter holiday comes during a difficult stretch for both Wall Street and Main Street, with the S&P 500 SPX index,
Dow Jones Industrial Average DJIA,
and the Nasdaq COMP Composite Index,
each in a range of about 6% to 13% so far in 2022, according to FactSet.
Bond markets have also faced a brutal reckoning, with yields on the 10-year Treasury note TMUBMUSD10Y,
rising to three-year highs before retreating in recent sessions. Bond yields move in the opposite direction to prices.
After the Easter break, investors will turn to quarterly earnings to gauge the effects of high inflation on companies and their customers. They will also prepare for the Fed’s two-day meeting on May 3-4, when the fed funds rate could rise by half a point, rather than the typical quarter-point move. The beginning of a significant reduction in the Fed’s balance sheet could also begin when the meeting concludes.
Read: Fed’s Waller says inflation may have peaked in March