US Market On Martin Luther King Jr. Day; Is Trading In Dow Jones, S&P 500, or Nasdaq Open On Jan-20? Outlook

US stock futures witnessed a cautious tone from investors in the early hours of Monday, as all focus shifted to anticipations of policy outcomes following Donald Trump's inauguration on January 20th. Notably, this will also mark the second swearing-in of a US President on Martin Luther King Jr. Day, which is a federal day for the largest economy in the world, the USA. That being said, Wall Street will also be closed on Monday, January 20th.

US Market Holidays 2025:

There are two major exchanges in the US, NYSE and Nasdaq. As per their holiday list for 2025, the US market will be closed on Monday, January 20th, to honour Martin Luther King Day.

Martin Luther King Jr. (born Michael King Jr.; January 15, 1929 - April 4, 1968) was an American Baptist minister, activist, and political philosopher who was one of the most prominent leaders in the civil rights movement from 1955 until his assassination in 1968. Martin Luther King Jr. Day was established as a holiday in cities and states throughout the United States beginning in 1971; the federal holiday was first observed in 1986. The Martin Luther King Jr. Memorial on the National Mall in Washington, D.C., was dedicated in 2011, as per Wikipedia.

US Market:

According to Trading Economics data, US stock futures declined on Monday as investors braced for a wave of policy announcements following Donald Trump's inauguration. Key areas to focus on will include his stance on tariffs, immigration, taxes, and deregulation. However, with US stock and bond markets closed on Monday for the Martin Luther King Jr. holiday, market reactions are expected to play out primarily in the foreign exchange markets.

That also being said, the US market will react to Donald Trump's inauguration day on January 21, 2025.

Last week, major indices like Dow Jones, S&P 500 and Nasdaq Composite surged by 2.5% to 3.7%. DJIA outperformed its counterparts with gains of nearly 4%, making it the largest weekly performance since November last year. A softer-than-expected inflation data heightened the probability of a rate cut from the US Federal Reserve ahead, which dampened the mood in the dollar and yields. Noteworthily, as per the data, stocks linked to cryptocurrencies, Trump-related businesses, and major tech firms were among the week's top performers.

What Is Inauguration Day?

Inauguration Day occurs every four years on January 20 (or January 21 if January 20 falls on a Sunday). The inauguration ceremony occurs at the U.S. Capitol building in Washington, DC. The next presidential inauguration is scheduled for January 20, 2025, as per the US government's official statement.

This time, the inaugural day will be held inside the United States Capitol rotunda in Washington, D.C. Trump's inauguration will be the 60th U.S. presidential inauguration and his second inauguration. He first took over the White House between January 20, 2017, to January 20, 2021.

Notably, last week, on January 17, Trump announced that the ceremony would be moved indoors of the United States Capitol rotunda due to harsh cold weather.

US Market Weekly Outlook:

In his weekly note, Nathan Peterson, Director of Derivatives Analysis for Charles Schwab said, "Next week the economic calendar is light which means the focus will be on Q4 earnings reports and any policy announcements from the Trump administration. Of course, which direction bond yields move will impact the direction of stocks, but this week's pullback in bond yields (10-year yields down ~20 basis points) somewhat softens the importance, at least for now. Given the potential for tariff announcements from the Trump administration early next week, along with the near-term overbought technical set-up, I think we could see some weakness in the early part of the week, especially if yields begin to move higher on any such announcements."

Therefore, he added, "I'm going to go with a "slightly bearish" forecast for next week. The outlook feels counter to today's bullish price action, but mean reversion is real and sometimes one has to zig when the market is zagging. What could challenge my outlook? Lower bond yields or positive pro-growth policy announcements could lead to another up week. "

Some of the big reports that will be announced this week are EIA Crude Oil Inventories, Leading Indicators, MBA Mortgage Applications Index, Continuing Claims, EIA Natural Gas Inventories, Initial Claims, Existing Home Sales, and University of Michigan Consumer Sentiment.

Among major earnings to watch out are --- Charles Schwab Corp. (SCHW), Netflix Inc. (NFLX), United Airlines Holdings Inc. (UAL), Procter & Gamble Co. (PG), Johnson & Johnson (JNJ), Abbott Laboratories (ABT), GE Vernova Inc. (GEV), Kinder Morgan Inc. (KMI), E Aerospace (GE), Union Pacific Corp. (UNP), American Airlines Group (AAL), Alaska Air Group Inc. (ALK), Intuitive Surgical (ISRG), Texas Instruments Inc. (TXN), CSX Corp. (CSX), American Express Co. (AXP), Verizon Communications Inc. (VZ), Nextera Energy Inc. (NEE), HCA Healthcare Inc. (HCA), and Northwest Bancshares Inc. (NWBI).