US Stock Market Holiday On July 3: Why Trading On Nasdaq, Nasdaq 100, DJIA, S&P 500 Will Be Closed On Friday?

The US stock market witnessed a mixed trend overnight despite easing concerns over rate hikes. The Dow Jones struck a new 52-week high, while the S&P 500 closed steady. However, Nasdaq and Nasdaq 100 indexes recorded sharp selloffs due to the decline in chipmakers' stocks for the second session in a row. The performance also comes after the US job report for June 2026 was weaker than expected. Despite the mixed trend, the US market ended the trading week on a bullish note with significant gains across indices.

Yes, you have read it right! The US stock market's trading week ended on July 2nd due to the holiday on July 3rd. Yup! Wall Street will be closed on Friday!

Why Will the US Stock Market Be Closed On Friday, July 3, 2026?

As per the NYSE and Nasdaq's July 2026 holiday list, there will be one special holiday on July 3, 2026, for Independence Day.

Although the USA celebrates Independence Day on July 4th, since the day falls on a Saturday, both exchanges will observe the holiday on July 3rd. Apart from this, the US market will be closed as usual during weekends. The dates are --- July 4th, 5th, 11th, 12th, 18th, 19th, 25th and 26th.

In total, Wall Street will observe nine holidays for July 2026.

US Stock Market Weekly Performance:

On July 2nd, Dow Jones closed at 52,900.07, registering a strong surge of 594.83 points or 1.14%. This is after the index hit a new all-time high of 52,903.85.

Meanwhile, S&P 500 index ended broadly flat at 7,483.24.

However, bulls had runaway from indices like Nasdaq and Nasdaq 100.

The tech-heavy index, Nasdaq Composite, ended at 25,832.67, registering a decline of 207.36 points or 0.80% on July 2nd. But Nasdaq 100 index was the hardest hit by crashing 479.92 points or 1.61% to close at 29,329.21.

The reason is the continued decline in chipmakers. As per Trading Economis, Chipmakers fell for a second day as investors questioned whether AI optimism had pushed valuations beyond reasonable levels. Fresh developments included reports that OpenAI was in talks to sell a 5% stake to the US government, while Meta (-4.9%) said it may monetize its excess compute capacity. Micron sank 7%, Applied Materials slipped 7.4%, and AMD dropped 4.3%. Tesla fell 7.5% despite a strong deliveries report.

"US Semiconductor stocks aren't feeling the love, and iShares Semiconductor ETF ended in the red for the second day in a row," Vikram Kasat, Head Advisory, PL Capital"

Kasat highlighted that the ETF shed 5.6% today, led by losses in Teradyne, KLA, Entegris, Lam Research, and Marvell Technology. It's the latest sign that Wall Street is shifting away from AI plays as a part of a broader rotation into more defensive sectors

Overall, in the week, despite recorded decline, Nasdaq has outperformed its counterparts with 2.1% weekly upside, followed by Dow Jones and S&P 500 which gained by 2% and 1.8% respectively.

US Independence Day 2026 Date:

Independence Day, known colloquially as the Fourth of July, is a federal holiday in the United States which commemorates the adoption of the Declaration of Independence on July 4, 1776, establishing the United States of America. This is day is a national holiday and is usually celebrated with fireworks, parades, barbecues, carnivals, fairs, picnics, concerts, baseball games, family reunions, political speeches, and ceremonies, in addition to various other public and private events celebrating the history, government, and traditions of the United States, as per Wikipedia.

What To Expect In Wall Street Ahead?

As per Kasat, odds for a rate hike dipped to about 18%, compared to 29% the previous day.

Explaining deeper on the AI stocks, Nathan Peterson, Director of Derivatives Research and Strategy for the Charles Schwab said, the sentiment around the artificial intelligence (AI) trade feels a little sour at this point, but its possible that the recent weakness is just wringing out the excess in the market and balancing what used to be lopsided positioning in the space.

Outside of the AI theme, Peterson added, "the broadening of the rally still appears to be underway, as the economic data and growth forecasts remain strong."

Next week will be light on both the economic and earnings calendar, so near-term technicals, Middle East headlines, oil prices, and yields will likely have a larger influence on market direction, as per Peterson.

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