The U.S. financial markets will observe an extraordinary trading pause on Thursday, to honor former President Jimmy Carter‘s state funeral, marking only the fourth such closure for a presidential remembrance in modern market history.

What Happened: The New York Stock Exchange and Nasdaq will suspend all trading operations, while the bond market will see a shortened session closing at 2 p.m. ET, as recommended by the Securities Industry and Financial Markets Association.

This follows President Joe Biden‘s executive order declaring Jan. 9 a national day of mourning for Carter, who died on Dec 29 at age 100.

While U.S. financial markets and post offices will close, most banks will maintain regular operations as the day is not designated as a federal holiday.

The market closure has sparked debate within the financial community. Notably, Pershing Square CEO Bill Ackman questioned the practice, arguing on social media platform X that “closing the market is synonymous with shutting down commerce.” However, NYSE Group President Lynn Martin defended the decision, emphasizing Carter’s public service legacy.

See Also: Jim Cramer Predicts Palantir Buying Surge Tonight After Morgan Stanley’s Underweight Rating: ‘Unless Another Analyst Starts With A Sell…’

Why It Matters: Carter’s presidential tenure (1977-1981) was marked by significant economic challenges, including peak inflation of 13.5%. His appointment of Paul Volcker as Federal Reserve chairman proved pivotal in establishing monetary policies that would later tame inflation, though these measures contributed to his re-election defeat.

For modern investors, Carter’s economic legacy includes the successful $1.5 billion government-backed rescue of Chrysler Corporation in 1980, which established a precedent for major corporate interventions. The automaker, now part of Stellantis N.V., ultimately repaid $12.5 billion in government loans.

The temporary market closure follows similar observances for former Presidents George H.W. Bush in 2018 and Gerald R. Ford in 2007.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.