Why Today’s Markets Take a Break for Labor Day

Labor Day means a quiet morning for stock trading in both the United States and Canada. Stock markets in these two countries are closed today so traders and investors have one extra day to enjoy the waning days of summer. But if the thought of business-as-usual feels hard to shake, the global currency markets are still ticking away, with forex trading open and active, albeit a bit quieter since North American participants are relaxing instead of moving money on their screens. 

Labor Day isn’t just another holiday marking a change in season; it’s rooted in the struggles and achievements of American workers. The day’s origins go back nearly a century and a half, first celebrated in New York City on September 5, 1882 by the Central Labor Union. About 10,000 workers marched in what became the first Labor Day parade, followed by speeches, picnics, and music, all emblematic of the unity and aspirations of labor groups in the post-Civil War era. At the time, child labor, twelve-hour workdays, and dangerous working environments were grim realities. Labor activists, and the newly forming unions, began to push for better conditions and shorter workdays, demanding more than just a day off, but a future with fairness, safety, and dignity built into every paycheck. 

For years, the push for a national holiday picked up steam, with celebrations spreading to other cities and states. By the time President Grover Cleveland signed Labor Day into federal law in 1894, 32 states were already marking the first Monday in September as a time to honor workers. The decision to select September, instead of May 1, was partly political: May Day’s association with international socialist and communist movements spooked the American establishment. Instead, September’s date felt less controversial, yet still deeply meaningful for the workers and organizers who made it happen. 

If Monday’s closure of major equity markets feels like a hiccup in the weekly rhythm of business, that’s by design. Labor Day is one of ten holidays each year when NYSE and Nasdaq shut their doors, along with Canada’s major exchanges, such as the Toronto Stock Exchange. Bond markets also take the day off. There’s a practical reason for this: the holiday gives everyone time to recharge at the end of summer, while also inviting us to remember the role labor unions and workers have played in shaping the economy. 

Currency traders, meanwhile, aren’t as restricted. The decentralized nature of the forex market means trading never truly stops, except over weekends and a handful of major global holidays, like New Year’s or Christmas. On Labor Day, activity might slow, especially in USD and CAD pairs, since so many North American participants are off the desk, but liquidity remains, as the world’s currencies keep moving, even when New York and Toronto are quiet. 

It might be tempting, when Labor Day falls in early September, to treat it as just a long weekend, or the start of fall. But for those working in business and finance, the holiday stands as a reminder that today’s workplace norms came from decades of advocacy, hardship, and progress. What once was a struggle for safe workspaces and fair pay has become the backbone of legal frameworks protecting workers across North America.

For those checking the markets this morning and finding them dormant, that pause is purposeful. Labor Day is a national chance to reflect on where the world of work has been, and where it’s going. Tomorrow, the floors of the NYSE, Nasdaq, and the TSX will buzz again, but today belongs to the people who keep those markets running: not just investors and executives, but the workers whose labor fuels the economy, every single day.