When and why markets close unexpectedly
The Northeastern US has been pounded by snow and is now expecting record low temperatures (or as Adam would call it, summer in Canada). But fear not brave traders, the NYSE almost never closes for weather events. While the exchange has been closed for extended periods due to other major events, weather has almost never been the cause.
- World War 1 was the cause of the longest shutdown on record at 4 months, 2 weeks. When the market re-opened the DJIA took the largest 1 day drop ever at 24.4%. That drop might have been surpassed in 1987 when the Dow dropped 508 points or 22.6%, but the “circuit breaker rule” shut the exchange down.
- FDR’s “bank holiday” shut the exchange down for 7 days in 1933.
- Then there was 9/11 which closed the market for 4 sessions.
However weather is almost never the cause of a closure. On October 29, 2012 the NYSE shut down for 2 days due to hurricane Sandy. That was the first time the exchange had been closed for 2 days due to weather since March 12 and 13 of 1888. This is just further proof that traders are the hardiest people on the planet.
