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If regular trading hours on Wall Street run from 9:30 a.m. to 4 p.m., shouldn’t we stop hearing about market hikes and dives by dinner time? 

Well, stock market hours aren’t that simple. Trading doesn’t stop when markets close, and it doesn’t necessarily start when they open either, thanks to pre-market and after-hours trading.

Trading outside of normal hours isn’t new, but it’s become more accessible for retail traders due to the rise of electronic communications networks, or ECNs. These digital systems facilitate trading beyond traditional hours, connecting buyers and sellers directly without an intermediary.

However, just because extended-hours trading is an option doesn’t necessarily mean it’s one you should take. Trading outside of regular hours comes with risks like less liquidity and higher prices.

What time does the stock market open?

The two major US exchanges are the New York Stock Exchange (NYSE) and the Nasdaq. They are both based in New York and are open Monday through Friday from 9:30 a.m. to 4 p.m. EST. 

Beyond regular trading hours, stock markets close for only nine federal holidays. On early-closure days, typically the days preceding and following a market holiday, regular trading ends at 1 p.m.

2021 stock market holidays

On stock market holidays, the NYSE and Nasdaq close for the entire day. Here are the observed holidays for 2021:

Friday, January 1: New Year’s Day

Monday, January 18: Martin Luther King Jr. Day

Monday, February 15: President’s Day

Friday, April 2: Good Friday

Monday, May 31: Memorial Day

Monday, July 5: Independence Day

Monday, September 6: Labor Day

Thursday, November 25: Thanksgiving

Friday, December 24: Christmas

You may think trading stops outside of normal stock market hours, but there’s more to the story. Most stock futures, which are contracts traders use to speculate an underlying asset’s price and trade in the direction of that index, start trading at 6 p.m. EST …read more

Source:: Business Insider

      

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