U.S. stock markets will observe a trading halt on Monday, January 19, as Wall Street closes for the Martin Luther King Jr. Day holiday. The closure affects both the New York Stock Exchange and Nasdaq, bringing a brief pause to trading activities during what is typically a busy earnings season.

Holiday Schedule and Market Operations

The Martin Luther King Jr. Day holiday is observed annually on the third Monday of January, honoring the life and contributions of civil rights leader Rev. Martin Luther King Jr. The federal holiday was established in 1983 when then-President Ronald Reagan signed it into law, creating a day of remembrance for King's pivotal role in the civil rights movement.

U.S. bond markets will also remain closed on Monday, following the schedule established by the Securities Industry and Financial Markets Association, and will reopen alongside stock markets on Tuesday.

Upcoming Market Closures

After the Martin Luther King Jr. Day holiday, U.S. financial markets are scheduled to operate without interruption until mid-February. The next planned closure will occur on Monday, February 16, when both stock and bond markets will shut for Presidents Day.

Additional scheduled closures for 2026 include Good Friday on April 3, Memorial Day on May 25, Juneteenth on June 19, Independence Day on July 3, and Labor Day on September 7.

Special Trading Hours

The holiday schedule also includes modified trading hours for certain dates. Markets will close for Thanksgiving on November 26, with an early closure at 1 p.m. ET on November 25. Similarly, Christmas Day falls on December 25, with trading ending early at 1 p.m. ET on December 24.

Market Performance Context

Wall Street's main indexes concluded the previous week with modest losses on Friday, despite receiving support from solid earnings reports in the technology and banking sectors. These scheduled holiday closures represent important considerations for investors and traders as they plan portfolio adjustments and manage liquidity throughout the year.

The US stock market is witnessing a significant shift in leadership as investors increasingly look beyond the technology sector that has powered the bull market for over three years. Industrial, healthcare and small-cap companies are now outperforming the broader S&P 500, marking a potential turning point in market dynamics that have been dominated by tech giants.

Technology Sector Faces Headwinds

After years of watching technology stocks drive market gains, with the S&P 500 rising over 90.00% since the bull market began more than three years ago, investors are becoming wary of expensive tech valuations. Stocks such as Nvidia, Alphabet and Broadcom have been key drivers of the market's enduring rally, but concerns over AI investment returns and elevated valuations are prompting a reassessment.

The rotation away from technology became evident since the end of October, with the tech sector declining while other sectors gained ground. This trend was particularly visible on Wednesday when the S&P 500 tech sector fell more steeply than broader market indexes.

Broadening Market Leadership Emerges

The shift in market dynamics is creating opportunities for previously overlooked sectors. Angelo Kourkafas, senior global investment strategist at Edward Jones, noted the optimism surrounding this potential broadening: "There is a lot of hope that this is going to be the year where we are going to see some true broadening of leadership."

The equal-weight version of the S&P 500, which serves as a gauge for the average stock in the index, has significantly outperformed the standard index. This performance gap highlights how the market rally is becoming less dependent on heavyweight technology stocks.

Earnings Outlook Supports Sector Rotation

Fourth-quarter earnings reports in coming weeks will be crucial in determining the durability of this broadening trend. A wide range of sectors is expected to show solid profits, with analysts anticipating that AI benefits will filter through to various industries beyond technology.

Nanette Abuhoff Jacobson, global investment strategist at Hartford Funds, expressed confidence in the earnings outlook: "Strategists have been predicting better earnings for a long time, but I really think it has legs this year. We're starting to see the AI benefits filtering through to such a broad collection of sectors."

Investment Strategy Implications

The changing market landscape is prompting investors to reassess their strategies and explore opportunities beyond the technology sector. Keith Lerner, chief investment officer at Truist Advisory Services, observed: "With some questions being raised on tech, investors are looking at, what are other areas that I could invest in."

This shift represents a significant change from the tech-led rally that began in October 2022, coinciding with the launch of ChatGPT and the subsequent enthusiasm for AI-linked shares. As concerns mount over whether AI investments will yield sufficient returns to justify current valuations, investors are finding value in industrial, healthcare and small-cap companies that offer more attractive risk-reward profiles.