US Stock Market Closed on Labor Day as Wall Street Prepares for Inflation Data

The US stock market is closed today, Monday, September 7, as Wall Street observes Labor Day. This three-day holiday weekend gives investors a break before a crucial week ahead for the markets.

Trading will resume on Tuesday, September 8, with major exchanges opening at 9:30 a.m. Eastern Time. The New York Stock Exchange and Nasdaq, along with US bond markets, are shut for the day.

The Labor Day weekend comes after Wall Street ended last week lower due to a stronger-than-expected August jobs report. This reshaped expectations for the Federal Reserve's next move, which will be crucial in determining whether interest rates rise at its September 16 meeting.

Investors are closely watching inflation data this week, with Producer Price Index (PPI) data for August due on Thursday and Consumer Price Index (CPI) data on Friday. These readings will have a significant impact on the Fed's decision, as they currently price a 58-59% probability of a 25-basis-point increase at the September meeting.

Matt Maley, chief market strategist at Miller Tabak + Co, warns that Treasury yields face a key test around 4.8%. A sustained move above this level could create 'meaningful problems' for other asset classes.