Market Extra: Presidents Day: Everything You Need To Know About Market Closures On Washingtons Birthday

U.S. financial markets will pause Monday in observance of Presidents Day — which, technically, is not the name of the holiday.

The New York Stock Exchange and Nasdaq will shutter on Feb. 18. And the Securities Industry and Financial Markets Association, or Sifma, is recommending no trading in dollar-denominated securities, meaning the closely watched 10-year Treasury note TMUBMUSD10Y, +0.00% — as well as interest rates for money markets and certificates of deposit — joins the Dow Jones Industrial Average DJIA, +1.74% , the S&P 500 index SPX, +1.09% and the Nasdaq Composite Index COMP, +0.61% in a static state.

And trading in futures and options on CME Group exchanges will also be halted on Monday. In other words, there will be no settlements in trading in gold futures GCJ9, +0.84% or crude oil CLH9, +2.54% However, traders will be able to deal in commodities on the Globex platform, with a pause starting after 1 p.m. Eastern time.

So, here’s the skinny on so-called Presidents Day. Congress declared Washington’s Birthday a holiday in 1879, according to the Library of Congress. The republic’s first president was born on Feb. 22, 1732.

A number of sources indicate that the holiday was at first only celebrated within the District of Columbia but became widely recognized as a federal holiday in 1885, marking the first time an American individual was memorialized via a bank holiday.

The Uniform Holidays Act of 1968 changed the day of commemoration to the third Monday of February. The Library of Congress’s website says that the day’s designation was never changed to Presidents Day formally but is often referred to by that name because Feb. 12 is the birthday of the 16th U.S. president, Abraham Lincoln.

The holiday is still often referred to as Washington’s Birthday, and it is recognized by that name at the NYSE. It is that history of recognizing, initially, one president and then, later, two presidents, or the presidency in general, that may be to blame for the style variations that tend to occur in written references to Presidents Day — or alternately, President’s Day or Presidents’ Day. Presidents Day is the preferred style for such journalistic standard setters as the Associated Press Stylebook (whose Twitter account tends to tweet a reminder annually) and the Wall Street Journal’s style guide.

Meanwhile, Canadian markets are closed in observance of Family Day, which coincides with Presidents Day in the U.S. in falling on the third Monday in February. Trading on European markets, and movements in such benchmarks as the Stoxx Europe 600 SXXP, +1.41% and the U.K.’s FTSE 100 UKX, +0.55% , are slated to be under way as usual on Monday.

Providing critical information for the U.S. trading day. Subscribe to MarketWatch's free Need to Know newsletter. Sign up here.

RECENT NEWS

UK High Street Banks Rake In £9.2 Billion In Interest On BoE Reserves: A Closer Look

In the intricate world of finance, where numbers often tell compelling stories, one recent figure stands out: £9.2 bill... Read more

Powell's Pledge: Federal Reserve Chair Signals Prolonged Period Of Higher Rates

Federal Reserve Chair Jerome Powell's recent statements have stirred significant interest in financial markets, particul... Read more

European Funds Body Throws Support Behind French Capital Markets Union: Implications For Brexit-Era Finance

In a significant development for European finance, a European funds body recently threw its support behind the French ca... Read more

Federal Reserve's Rate Decision: Navigating Economic Uncertainty

The recent decision by the Federal Reserve to adjust interest rates has sparked significant interest and speculation amo... Read more

Building Bridges: Strengthening Investor Confidence Through Enhanced Risk Data In Emerging Markets

In the dynamic landscape of emerging markets, investor confidence plays a pivotal role in driving economic growth and pr... Read more

Reading The Tea Leaves: Analyzing Market Responses To Speculation Of A Fed Interest Rate Increase

As speculation mounts regarding a potential interest rate increase by the Federal Reserve, investors are closely monit... Read more