Here’s What Investors Can Do When Markets Are Closed

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The U.S. stock market shuts down roughly a dozen times each year for federally recognized holidays, plus a handful of early closing days around Thanksgiving, Christmas, and Independence Day. These closures are part of the fabric of Wall Street tradition, but they occasionally draw criticism from those who see them as relics of a bygone era. Recently, former President Donald Trump added fuel to the debate, claiming that America “can’t be great again if everyone is always on vacation,” and singling out the stock market holiday calendar as an example of “bureaucratic inefficiency.”

Regardless of whether you agree with Trump’s assessment, his remarks have sparked a timely conversation for investors and traders alike: what should you do when the markets go quiet? For many, market holidays feel like a frustrating disruption to their routines and strategies. Yet for disciplined investors, these breaks present valuable opportunities to reflect, plan, and position themselves more effectively for when trading resumes.

In this article, we’ll unpack the background of Trump’s comments, examine the current market environment, discuss why market holidays exist, and — most importantly — offer an actionable roadmap for making the most of market downtime.

Trump’s Comments: A Familiar Critique With Political Undertones

On a recent campaign stop in Florida, Trump took aim at what he characterized as America’s overabundance of public holidays and “days off that nobody can even explain anymore.” While his remarks were likely aimed more broadly at perceived government inefficiency, he specifically mentioned the financial markets, claiming, “You’ve got investors and workers sitting around because of a schedule set decades ago. It’s bad for business, bad for growth.”

Trump’s comments aren’t entirely unprecedented. Over the years, there have been periodic calls — especially from hedge funds and high-frequency trading firms — to reduce or even eliminate some holiday closures, particularly on days like Columbus Day or Veterans Day, when the bond market is closed but many other sectors remain open. However, defenders of the status quo argue that these holidays contribute to a healthier market by providing natural pauses, reducing systemic risk, and aligning with long-standing federal observances.

For investors, the reality is clear: the holiday schedule is unlikely to change in the near term, and even if the debate continues, you’re better served by learning to use market closures to your advantage than by railing against them.

Latest Market Overview: A Summer of Transition

Before exploring what investors can do on closed days, it’s helpful to take stock of the current market backdrop. As of July 2025, U.S. equities are navigating a complex and nuanced environment that defies simple narratives.

Earnings Growth Slows, But Resilience Remains

The S&P 500 is up approximately 7% year-to-date, fueled by the continued outperformance of mega-cap tech stocks in the AI and cloud computing space. The Nasdaq Composite has risen nearly 12%, while the Dow Jones Industrial Average lags, sitting roughly flat for the year, as cyclical and industrial sectors grapple with headwinds from higher borrowing costs.

Corporate earnings growth has decelerated compared to 2023’s post-pandemic bounce but remains in positive territory, with analysts projecting full-year S&P 500 earnings growth of about 4-5%. That’s modest, but not recessionary.

Interest Rates and Inflation: The Waiting Game

The Federal Reserve has held its benchmark rate steady since late 2024, maintaining a restrictive policy stance in an effort to fully bring inflation back to its 2% target. Inflation has cooled considerably — now running at about 2.7% year-over-year — but Fed officials remain cautious, signaling that they may delay rate cuts until Q4 or beyond.

Bond yields have stabilized, with the 10-year Treasury yield hovering around 4.1%, and credit spreads remain historically narrow, indicating that investors are not pricing in a high risk of near-term economic contraction.

Investor Sentiment: Guarded Optimism

Investor sentiment surveys show a cautious but constructive outlook. Retail investors have returned to the market after sitting on the sidelines in 2022–2023, but money market funds still hold record levels of cash, suggesting ample dry powder. Professional fund managers have positioned portfolios defensively but are beginning to rotate back into cyclical sectors in anticipation of eventual rate cuts.

Why Markets Close: More Than Just Tradition

It’s tempting to view market holidays as inconvenient interruptions or even archaic holdovers from the pre-digital era. But there are good reasons these closures persist — and why you probably shouldn’t want them to go away entirely.

Systemic Safety and Operational Reset

Financial markets are complex ecosystems involving millions of participants, clearinghouses, custodians, and counterparties. Regular, scheduled pauses reduce operational risks, allow firms to settle outstanding trades cleanly, and give markets a chance to recalibrate.

Global Consistency

Market holidays also reflect global norms. Most major markets — from the London Stock Exchange to the Tokyo Stock Exchange — observe regular holidays aligned with cultural or national traditions. Completely eliminating closures would isolate the U.S. market from its global peers.

Human Well-being

Even in the age of algorithms, financial markets are ultimately run by people. Scheduled breaks help traders, analysts, compliance officers, and back-office staff avoid burnout, which benefits market functioning overall.

For long-term investors in particular, the evidence is clear: missing a few days of trading each year has virtually no impact on long-term performance. Indeed, the best-performing investors — such as Warren Buffett — emphasize patience over constant activity.

What To Do When Markets Are Closed: 10 Practical Strategies

So, what should you do the next time the markets are dark? Here’s a deeper dive into actionable steps you can take to stay productive and sharpen your investing edge.

1. Conduct a Portfolio Health Check

Use the downtime to review your entire portfolio:

• Are you overexposed to certain sectors or regions?

• Has a winning position grown so large that it now skews your risk profile?

• Are you holding underperformers that no longer fit your strategy?

Consider rebalancing back to your target asset allocation. This disciplined approach is key to long-term success.

2. Prepare for Earnings Season

With markets closed, you can spend time compiling and reviewing earnings calendars for the upcoming season. Analyze which companies you own or are watching and what consensus expectations look like. Identify opportunities to buy quality companies at attractive valuations post-earnings surprises.

3. Deep-Dive Research

Quiet days are perfect for long-term research.

• Read through annual reports (10-Ks) and quarterly reports (10-Qs).

• Listen to archived earnings calls or investor day presentations.

• Study competitive landscapes and industry trends.

This kind of fundamental analysis often reveals insights that short-term price watching cannot.

4. Study the Macro Picture

Zoom out and consider the big picture:

• How are central bank policies evolving?

• What are inflation and unemployment trends suggesting about economic growth?

• Are there geopolitical risks — like elections, wars, or trade disputes — that could impact markets?

Aligning your portfolio with macro trends can improve returns and reduce risks.

5. Evaluate Your Strategy

Are you a value investor, a growth investor, or something else entirely? Are you sticking to your plan or chasing performance? Market holidays are great for reassessing your goals, risk tolerance, and time horizon — and making sure your strategy still fits.

6. Backtest and Practice

For more active traders, use market closures to backtest strategies or simulate trades on a demo platform. This allows you to refine your approach without risking real capital. Look for patterns in historical data that can improve your future decision-making.

7. Plan Your Taxes

Tax-efficient investing can add meaningful value over time. Use downtime to:

• Review unrealized gains and losses.

• Harvest tax losses if appropriate.

• Ensure you’re on track with retirement account contributions.

8. Build a Watchlist

Identify high-quality companies you’d like to own at the right price. Set price alerts and keep notes on why each name made your watchlist. This preparation allows you to act decisively when markets reopen and opportunities arise.

9. Learn and Reflect

Read books, listen to podcasts, or watch interviews with great investors. Reflect on your past trades — what worked, what didn’t, and why. Continuous learning is a hallmark of successful investors.

10. Rest and Recharge

Finally, don’t forget to take care of yourself. Use the break to disconnect, recharge, and regain perspective. Investing is a marathon, not a sprint — and maintaining mental and emotional well-being is crucial.

Key Insights for Investors

Here are the major takeaways every investor should keep in mind when markets close:

1. Market holidays are designed to enhance stability and don’t hurt long-term investors.

2. Downtime provides a rare chance to step back and think strategically.

3. Portfolio rebalancing during calm periods keeps risk aligned with goals.

4. Macro and micro research during quiet periods improves decision-making.

5. Practicing and refining your craft sharpens your edge over time.

6. Tax planning and recordkeeping during off-days can save money.

7. Having a clear watchlist prepares you to seize opportunities quickly.

8. Continuous learning and self-assessment distinguish successful investors.

9. Burnout is real — use breaks to recharge and maintain perspective.

10. Don’t let political noise or frustration distract you from what matters.

Historical Perspective: How Market Holidays Have Evolved

For those who see market holidays as merely annoying relics, it’s instructive to understand their origins. U.S. stock exchanges have historically aligned closures with federal holidays to maintain consistency and to respect cultural norms.

In the early 20th century, markets closed as often as 20 days a year — including Saturdays. Over time, technological advances and globalization reduced the need for so many breaks, but key holidays like New Year’s Day, Independence Day, Thanksgiving, and Christmas have endured.

Even more recently, markets have occasionally closed unexpectedly — such as after the September 11 attacks and during national days of mourning — demonstrating the importance of flexibility and respect for broader societal events.

Conclusion: Turning Downtime Into Opportunity

Donald Trump’s complaint about “too many holidays” may resonate with traders who thrive on market action, but the reality is that these breaks are part of the investing landscape and are unlikely to disappear anytime soon.

Rather than seeing holidays as wasted days, view them as an opportunity to step off the treadmill, regroup, and position yourself for the long term. Whether you’re rebalancing your portfolio, researching new ideas, practicing your craft, or simply resting and recharging, market closures can actually enhance your performance over time.

As the old saying goes: “The market rewards patience.” And sometimes, that means making the most of the days when the market isn’t even open.

So next time the bell stays silent, don’t let frustration get the better of you. Use the quiet to think more clearly, plan more carefully, and prepare more effectively. When trading resumes, you’ll be better for it — and your portfolio will likely show the results.

Disclaimer: I want to make it clear that I am not a financial advisor, and nothing I say is intended to be a recommendation to buy or sell any financial instrument. Additionally, it's important to remember that there are no guarantees or certainties in trading or investing, and you should never invest money that you can't afford to lose.

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