Before Labor Day became a U.S. federal holiday, it was celebrated in the late 19th century by activists and individual states, according to the U.S. Department of Labor.

Oregon was the first state to pass a law creating a holiday marking the achievements and contributions of workers in 1887. It was followed that same year by Massachusetts, Colorado, New York and New Jersey. Near the close of the 19th century, as the American labor movement gained strength, Congress passed an act making Labor Day an official federal holiday, celebrated on the first Monday in September. President Grover Cleveland signed the bill into law in 1894.

The first four federal holidays, created by Congress in one bill in 1870, gave paid time off to federal workers in the District of Columbia for New Year’s Day, Independence Day, Thanksgiving Day and Christmas Day, according to a report on the evolution of federal holidays by the Congressional Research Service.

While federal holidays legally apply only to federal employees and D.C., stock markets, schools and many businesses close in observance of many of the same dates.

Is the U.S. stock market open on Labor Day?

The New York Stock Exchange and the Nasdaq Stock Market are both closed on Labor Day.

The stock market was relatively quiet last week, keeping major indexes in a relatively narrow range most days. Trading also typically slows down ahead of the holiday weekend. On Friday, the Dow Jones Industrial Average lost 75 points, or 0.2%, to close at 35369, while the Nasdaq Composite was up 0.2% and the S&P 500 fell less than 0.1%.

Labor Day is one of nine days that the market closes during the year. Most are federal holidays, such as Memorial Day and Independence Day. The market is also closed on Good Friday.

Decisions on stock-market holiday schedules are made by all U.S. stock exchanges in coordination with regulators. Besides the NYSE, a half dozen other companies operate stock exchanges in the U.S. These include Nasdaq and Cboe Global Markets Inc.

Will International stock markets be closed?

No. For most of the world, Labor Day—more commonly known as May Day, Workers’ Day or International Workers’ Day—is celebrated on May 1. Other major stock markets, including the London Stock Exchange and the Tokyo Stock Exchange, will remain open.

What other federal holidays are there?

Labor Day is one of 12 federal holidays in the U.S. National holidays include Inauguration Day, which is celebrated every four years after a presidential election.

The country’s newest federal holiday is Juneteenth, observing the end of slavery in the U.S. The June 19 observance was added in 2021, and was the first new federal holiday created by Congress in nearly four decades.

While the stock market closes for most U.S. public holidays, it remains open for Columbus Day in October and Veterans Day in November.

Are there plans to close the stock market for the country’s newest federal holiday?

The Securities Industry and Financial Markets Association recommended earlier this year that markets close on Monday, June 20, 2022, in observance of Juneteenth, which falls on a Sunday next year.

Is the bond market open on Labor Day?

No. The biggest Wall Street banks are all members of Sifma, so the financial industry typically follows the group’s recommended holiday schedules.

What else is closed?

Most banks are closed on the holiday, as are many local public institutions, such as libraries and schools. Many city, state and federal agencies and offices, such as courts or a state’s department of motor vehicles, will also be closed on Monday.

U.S. Postal Service offices are closed, and residential or business mail won’t be delivered, with the exception of Priority Mail Express.

When is the next federal holiday?

The next time stock markets will close in 2021 is Thanksgiving, which will fall on Thursday, Nov. 25.

Write to Talal Ansari at Talal.Ansari@wsj.com