Why is the US stock market closed today? A crucial week awaits Wall Street

US stock markets are closed on Monday, September 7, as Wall Street observes Labor Day, giving investors a three-day holiday weekend.

The New York Stock Exchange and Nasdaq, along with US bond markets, are shut for the day. Trading will resume on Tuesday, September 8, with the major exchanges opening at 9:30 a.m. Eastern Time.

Wall Street ended last week lower after a much stronger-than-expected August jobs report reshaped expectations for the Federal Reserve’s next move. Investors now face a week packed with inflation data that could determine whether the Fed raises rates at its September 16 meeting.

What to watch out for this week

The biggest test will come from the US inflation numbers. Producer Price Index data for August are due on Thursday, followed by Consumer Price Index data on Friday. The readings will be closely watched after August payrolls rose by 162,000, well above expectations, while the unemployment rate held at 4.1%.

The jobs data have increased bets on a rate hike this month. Markets are currently pricing roughly a 58–59% probability of a 25-basis-point increase at the September meeting, although the decision remains dependent on the incoming inflation data.

That has also put the Treasury market under the spotlight. Treasury yields face a key test around 4.8%, with a sustained move above that level potentially creating “meaningful problems” for other asset classes, according to Matt Maley, chief market strategist at Miller Tabak + Co.

“We remain concerned about the Treasury market…as rising fiscal deficits, massive debt issuance, and heavy corporate borrowing continue to pressure long-term yields... while Treasury Department jawboning has failed to produce the desired decline in rates (at least so far),” Maley said in a note over the weekend, CNBC reported.

The higher-rate backdrop could have broader implications for equities, particularly high-valuation stocks, as investors reassess the cost of money and the outlook for corporate earnings.

How did Wall Street perform last week?

The Dow Jones Industrial Average fell 0.51% over the week, while the S&P 500 declined 0.38%. The Nasdaq Composite ended 0.29% lower.

The August jobs report was the key market catalyst. The stronger employment numbers boosted expectations that the Fed may have to keep policy tighter for longer, even as officials remain divided over the inflation outlook. Federal Reserve Governor Christopher Waller has said he could support leaving rates unchanged if the next inflation data show continued moderation.

President Donald Trump has continued to call for lower interest rates, adding another layer of uncertainty ahead of the Fed meeting. On Sunday, Trump also posted a stream of AI-generated images and sweeping, unverified claims on Truth Social, including a claim that he had made hundreds of billions of dollars on stocks and other holdings for the US.

What is Labor Day?

Labor Day is a US federal holiday observed on the first Monday of September. It honours the American labour movement and the contributions of workers to the US economy.

According to the NYSE calendar, US markets will also be closed on:

Thanksgiving Day: November 26
Christmas Day: December 25

Markets will close early at 1 p.m. ET on November 27, the day after Thanksgiving, and December 24, Christmas Eve.