US Stock Market Predictions After Labor Day 2025: S&P 500, Dow Jones and Nasdaq Future
Every year after Labor Day a new chapter begins for US stock market investors. This year too the situation is no different. There is a lot of curiosity among traders about US stock market predictions after Labor Day 2025. The market is closed on Monday, 1st September 2025 as Labor Day is an official holiday, and now everyone’s eyes are fixed on Tuesday’s session.
US Stock Market Closed on Labor Day 2025
Both NYSE and Nasdaq exchanges remained closed on Labor Day. Due to this, investors got a long weekend in which the market was off for three days on Saturday, Sunday and Monday. Usually there is trading for half a day before the holiday, but this time there was no half-day session due to the holiday falling on the weekend. Now everyone is waiting for the opening of Tuesday, where the real mood of the market will be understood.
September: Tough month for Wall Street
If we look at history, September has always been a tough month for Wall Street. According to data from Stock Trader’s Almanac, in the last 35 years, the S&P 500 has shown an average decline of 0.8% in September. This is the reason why it is considered the weakest month of the year. And the interesting thing is that the stock market has gone down in September 18 times out of 35. Meaning investors find this month a little risky.
On 29 August 2025, just before Labor Day weekend, the market showed a negative tone. The S&P 500 closed down 0.64% at 6,460.26, the Nasdaq fell 1.15% to 21,455.55, and the Dow Jones also closed down 0.20% at 45,544.88. These numbers make it clear that the market was under pressure before the holiday break, especially due to AI and tech stocks which were moving weak in recent days.
S&P 500, Dow Jones and Nasdaq Outlook
If we talk about August, then despite last-day weakness, the overall month was positive. The S&P 500 was up 1.9% in August and year-to-date has shown growth of almost 10% so far, which is a near record high. This shows that the market is still resilient.
Stocks like UnitedHealth Group, American Express, Johnson & Johnson, Coca-Cola and Walmart showed strong performance in the Dow Jones, while big names like Nvidia, Amazon, Caterpillar and IBM faced losses. The tech-heavy Nasdaq is still volatile as there is a lot of dependency on AI and chip stocks.
Jobs Report and Fed Decision Impact
Now the next big test for the market will be the August US jobs report. According to a Reuters poll, 75,000 new jobs are expected to be added this time. Last month’s numbers were just 73,000, which were quite weak and the downward revisions of the previous months created a further negative impact. If the jobs report is weak this time too, then there can be immediate pressure on the market.
Along with this, everyone’s eyes are also on the policy of the Federal Reserve. The current Fed futures data shows that there is an 89% chance that the Fed will cut the rate by 25 basis points in its September 16–17 meeting. If the rate is cut, it can become a positive trigger for the market and equities will get support.
Next US Stock Market Holiday 2025
Now that the Labor Day holiday is over, the next big holiday will be Thanksgiving Day, Thursday, 27 November 2025, and after that Christmas, Thursday, 25 December 2025. Meaning now investors will have a long uninterrupted trading stretch till November, which can further increase volatility, especially against the backdrop of weak history of September.
Investor Sentiment After Labor Day
The market mood is expected to remain quite mixed after Labor Day. While there is optimism that AI and strong earnings growth will support the market, September’s historical weakness keeps everyone on guard. Earnings from chipmakers like Broadcom and clarity on jobs data will determine the short-term direction of the market.
Political and global factors like tariff concerns and trade news may also impact the market. Investors will now have to remain selective and track market signals closely.
Conclusion
US stock market predictions after Labor Day 2025 give a clear picture that a testing phase is now starting for Wall Street. Jobs report, Fed rate cut, and corporate earnings will be all key drivers for September. If positive data emerges, the S&P 500, Dow Jones and Nasdaq could challenge the highs again, but if jobs or policy expectations are missed, September’s historic weakness could be seen again.
Disclaimer:
This article is for informational purposes only. Nothing contained herein is financial or investment advice. Stock market investments are risky, so please consult your financial advisor before making any decision.
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