Stock exchanges serve as vital hubs where traders engage in the buying and selling of various securities issued by corporations and governments.
These include stocks, bonds, exchange-traded funds (ETFs), commodities, derivatives, and more. By facilitating transactions in a centralized and transparent manner, exchanges ensure fair trading practices.
Trading activities unfold either in a physical exchange or online during specific trading hours. The term “trading day” signifies the duration within which investors conduct transactions on a stock exchange during regular business hours.
Once trading concludes, all activities halt until the commencement of the next business day.
Just as any business observes holidays, the stock market also pauses on designated days, leading to a suspension of activities during standard business hours.
The holiday schedule varies based on the location of the exchange. Here, we outline significant holidays observed by U.S. exchanges, international markets, and other financial sectors.
| ℹ️ Key Info to Consider |
|---|
| U.S. markets engage in trading from Monday to Friday, but trading hours adapt to holiday schedules.💼 |
| While the NYSE and Nasdaq often align with federal holidays, they remain operational on Veterans Day and Indigenous Peoples’ Day.🏢 |
| Bond market exchanges generally mirror the federal government’s holiday calendar.📈 |
| International markets might feature distinct trading hours and holidays.🌍 |
| Notable trends exist in trading activities on days preceding and following holidays, such as the S&P 500 often experiencing losses on the last trading day of the year.📊 |
What you'll learn:
➤ What Are the US Stock Exchange Trading Hours?
All major stock exchanges in the United States facilitate trading during the regular business week. Trading activities occur from Monday to Friday, commencing at 9:30 a.m. with the opening bell and concluding at 4 p.m. when the closing bell rings. Weekends are non-trading days.
Both the New York Stock Exchange (NYSE) and the Nasdaq, along with smaller exchanges, closely adhere to the U.S. federal government’s schedule—although minor exceptions exist.
The complete trading schedule for the year 2023 is outlined below:
2023 US Stock Market Holidays
| Holiday | NYSE | Nasdaq |
|---|---|---|
| Thanksgiving Day | Closed (Nov. 23) Early Close: 1:00 p.m. (Nov. 24) | Closed (Nov. 23) Early Close: 1:00 p.m. (Nov. 24) |
| President’s Day | Closed (Feb. 20) | Closed (Feb. 20) |
| New Year’s Day | Closed (Jan. 2) | Closed (Jan. 2) |
| Memorial Day | Closed (May 29) | Closed (May 29) |
| Martin Luther King Jr. Day | Closed (Jan. 16) | Closed (Jan. 16) |
| Labor Day | Closed (Sept. 4) | Closed (Sept. 4) |
| Juneteenth | Closed (June 19) | Closed (June 19) |
| Independence Day | Early Close: 1:00 p.m. (July 3) Closed (July 4) | Early Close: 1:00 p.m. (July 3) Closed (July 4) |
| Good Friday | Closed (April 7) | Closed (April 7) |
| Christmas | Closed (Dec. 25) | Closed (Dec. 25) |
➤ What Are Foreign Stock Market Trading Hours?
Trading hours can vary across different parts of the world, with some markets starting as early as 8 a.m. and closing as late as 5 p.m. local time.
While there are holidays that align between foreign stock markets and those in the United States, such as Easter, Christmas, and New Year’s Day, not all schedules coincide. It’s essential for investors and traders with holdings in foreign stocks to recognize that holidays can differ by country.
Interestingly, there are instances where foreign markets operate on days when U.S. markets are closed, and vice versa.
For example:
- Canadian stock exchanges remain open on U.S. Thanksgiving, occurring on the fourth Thursday of November, but close for Canadian Thanksgiving on the second Monday of October.
- Certain markets, including those in Canada, the United Kingdom, and Australia, close on Boxing Day, which follows Christmas.
- United Kingdom markets close for Bank Holiday, and Oslo markets close on Ascension Day.
- Indian markets observe closures on Republic Day (Jan. 26), Independence Day (Aug. 15), Id-Ul-Fitr, and Diwali.
- Typically, if a holiday falls on a Saturday, the preceding Friday is a closed trading day, and if it falls on a Sunday, the following Monday is closed.
Please be aware that trading hours and holiday observances can vary widely, depending on the specific foreign market.
➤ Other Financial Markets
The U.S. bond markets’ holiday closures are guided by the Securities Industry and Financial Markets Association (SIFMA).
The Cboe Options Exchange, a hub for equity, index, and interest rate options traders, typically aligns with major U.S. stock market schedules. It also tends to have early closing sessions before holidays.
After the trading day concludes, physical trading activities cease. Electronic trading may persist during after-hours or extended-hours sessions.
➤ How Do Holidays Affect Trading?
Seasonal trends often influence investors’ trading strategies. During certain U.S. holidays, trading volumes may decrease as many participants are occupied with vacations and family commitments. Additionally, there’s typically a lull in significant business news releases before holidays.
The S&P 500 commonly experiences losses on the final trading day of the year, followed by gains on the first trading day of the new year. Trading days surrounding January 1 can be influenced by tax-related gain/loss strategies and portfolio adjustments.
At times, the pattern can be reversed, showing gains on the day before a holiday and declines on the following day. For instance, the Thursday preceding Good Friday generally results in gains, while the trading day after often sees losses.
President’s Day tends to yield losses on both the preceding and succeeding days. Conversely, Christmas and Thanksgiving frequently bring gains on both sides of the holiday.
➤ US Stock Exchange Holidays FAQ
| Question | Answer |
|---|---|
| What are the normal stock market holidays? | Stock market holidays vary by country. Common holidays include New Year’s Day, Christmas, and Good Friday. |
| Which holidays is the stock market closed for in 2023? | In 2023, U.S. stock markets are closed on New Year’s Day, Martin Luther King, Jr. Day, President’s Day, Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving Day, and Christmas. Early closures occur on Black Friday and Christmas Eve. |
| How late is the stock market open? | U.S. markets close at 4 p.m. Foreign markets vary in their trading hours, depending on their geographic location. |
| Does the stock market close early sometimes? | Yes, American equity markets close early on specific days, such as Black Friday and Christmas Eve. Bond markets also close early before major holidays like Good Friday and Labor Day, as well as on Black Friday and Christmas Eve. |
