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'May Day' Market Closings: Quiet Day for US?

Several major markets around the world will be closed Tuesday for May Day, which will help limit volatility for U.S. equities.

Emerging Markets Globe
Saul Gravy | Photographer's Choice | Getty Images
Emerging Markets Globe

May Day, also known as International Workers' Day, is a national holiday celebrating labor rights in more than 80 countries and is also observed unofficially in many others.

Meanwhile, all U.S. stock exchanges will be open and operate as normal.

“The market pattern has shown that lacking any negative Europe and Asian markets, U.S. markets have found a path of least resistance to the upside,” said Art Hogan, managing director at Lazard Capital Markets.

Hogan noted U.S. equities have been decoupling from the international markets in recent months, which has also helped reduce volatility.

“Although we get a lot [of economic reports] this week, everyone’s going to be focused on Friday’s jobs numbers,” added Hogan.

Trading volume is also expected to be significantly lighter. Joe Bell, senior equity analyst at Schaeffer's Research noted that the SPY's average volume on May 1 is 29 percent less compared to other days of the year.

And Howard Silverblatt, senior index analyst at Standard & Poor’s, found that the S&P index climbs an average of 0.14 percent (based on data over the last 62 occurrences), against a daily average gain of 0.03 percent since 1928.

“The S&P has outperformed on May 1, but it’s also the first day of the month, which has a higher statistical probability of being up,” said Silverblatt.

Here's a list of some major markets that will be closed:

Brazil

China

France

Germany

Greece

Hong Kong

India

Italy

Portugal

Russia

Singapore

Spain

Meanwhile, Occupy Wall Street protestors are planning marches and demonstrationsacross the world on Tuesday. The movement, which started in New York City last September, addresses the income disparity and wealth distribution between the richest “one percent” and the rest of the population.

Follow JeeYeon Park on Twitter: @JeeYeonParkCNBC

Questions? Comments? Email us at marketinsider@cnbc.com

  • Patti Domm

    Patti Domm is CNBC Executive Editor, News, responsible for news coverage of the markets and economy.

  • A CNBC reporter since 1990, Bob Pisani covers Wall Street from the floor of the New York Stock Exchange.

  • CNBC's Senior Personal Finance Correspondent

  • JeeYeon Park is a writer for CNBC.com. Follow her on Twitter: @JeeYeonParkCNBC

  • Rick Santelli joined CNBC Business News as an on-air editor in 1999, reporting live from the floor of the Chicago Board of Trade.

  • Senior Producer at CNBC's Breaking News Desk.