Stock Market Trading Hours: Everything You Need to Know
The stock market operates similarly to a traditional business, with set trading hours and closures on federal holidays. When the market is open, traders and brokers help buy and sell securities. They do this for companies and individual investors.
However, unlike a typical retail store, stock prices fluctuate constantly based on supply and demand. Even after the market officially closes, trading continues through extended hours sessions.
When Does the Stock Market Open and Close?
In the United States, the stock market operates from 9:30 a.m. ET to 4:00 p.m. ET, Monday through Friday. This schedule applies to both the New York Stock Exchange (NYSE) and the Nasdaq, the two primary stock exchanges in the country. The market remains closed on weekends and certain holidays.
The terms "opening bell" and "closing bell" refer to the official start and end of the trading day. Companies often participate in bell-ringing ceremonies, particularly on their first day of public trading, marking significant milestones in their business journey.
What Is Extended Hours Trading?
Extended hours trading allows investors to buy and sell stocks outside of standard market hours. This includes:
Pre-market trading: Begins before the market opens
After-hours trading: Continues after the market closes
Investors often trade during these times to react to earnings reports, global events, or breaking financial news. However, unlike regular trading, extended-hours transactions take place on Electronic Communication Networks (ECNs) instead of traditional exchanges.
Extended Trading Hours by Market
NYSE Arca Equities (ETFs):
Pre-opening session: 2:30 a.m. ET (orders can be queued until 4:00 a.m. ET)
Early trading session: 4:00 a.m. ET – 9:30 a.m. ET
Late trading session: 4:00 p.m. ET – 8:00 p.m. ET
NYSE, NYSE American, NYSE Chicago, and NYSE National:
Pre-opening session: 6:30 a.m. ET (orders queued until 7:00 a.m. ET)
Early trading session: 7:00 a.m. ET – 9:30 a.m. ET
Late trading session: 4:00 p.m. ET – 8:00 p.m. ET (NYSE does not have a late trading session)
Nasdaq Extended Hours:
Pre-market trading: 4:00 a.m. ET – 9:30 a.m. ET
After-hours trading: 4:00 p.m. ET – 8:00 p.m. ET
Can You Trade When the Market Is Closed?
Trading rules vary by brokerage, but most allow only certain types of orders during extended hours—primarily limit orders. A limit order specifies the maximum price you are willing to pay (for a buy order) or the minimum price you will accept (for a sell order).
For example, Fidelity permits certain trades, such as buy, sell, and short-sale orders, but all must be limit orders. Their extended hours trading windows include:
Pre-market: 7:00 a.m. ET – 9:28 a.m. ET (8:00 a.m. ET for short sales)
After-hours: 4:00 p.m. ET – 8:00 p.m. ET
Risks of Extended Hours Trading
Trading outside regular market hours comes with added risks:
Lower liquidity: Fewer buyers and sellers can make it harder to execute trades at desired prices.
Higher volatility: Prices can swing more drastically due to lower trading volume.
Limited order types: Market orders are typically unavailable, forcing traders to rely on limit orders.
Bond Market Trading Hours
The bond market operates from 8:00 a.m. ET to 5:00 p.m. ET, with holiday closures that mostly align with the stock market. Some days also have early closures at 2:00 p.m. ET.
The NYSE conducts two daily bond auctions at:
4:00 a.m. ET
8:00 a.m. ET
Commodities Market Hours
Commodities, including oil, gold, and agricultural products, are traded via futures contracts. Unlike stocks, futures markets operate nearly 24 hours a day, six days a week, starting on Sunday. Each commodity has its own specific trading schedule.
Cryptocurrency Market Hours
Unlike traditional stock and commodities markets, the cryptocurrency market never closes. It operates 24/7, 365 days a year, allowing investors to trade at any time. However, the highest trading volumes typically occur during standard stock market hours.
Final Thoughts
Knowing stock market hours and extended trading sessions can help investors make better choices. It is also important to understand the risks of after-hours trading. No matter if you trade stocks, bonds, commodities, or crypto, it is important to understand how markets work. This knowledge helps you stay ahead in finance.
Sources:
https://www.fidelity.com/learning-center/smart-money/stock-market-hours
Disclosure:
This material is provided as a courtesy and for educational purposes only. Please consult your investment professional, legal or tax advisor for specific information pertaining to your situation.
Advisory Services Network, LLC does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state laws are complex and constantly changing. You should always consult your own legal or tax professional for information concerning your individual situation.
