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You would think the question “what time does the stock market open” would be a simple one to answer.
Well, it ain’t.
Below we’ll look at what time the markets open and close, why those times don’t really matter and why it’s still important to know the opening and closing times of the market.
Confused? Read this short article and you won’t be for long!
What Time Does the Stock Market Open?
In the United States, the 2 main stock markets are the New York Stock Exchange (NYSE) and the Nasdaq. Both these markets open at 9:30am Eastern Time Monday through Friday. They are closed on the weekends and major holidays.
What Time Does The Stock Market Close?
Both the NYSE and Nasdaq close at 4:00pm Eastern each weekday. Sometimes there’s an early close due to a holiday.
Why the Stock Market’s Opening and Closing Time Doesn’t Totally Matter
While the markets are open from 9:30am to 4pm, it’s possible to trade stocks before and after the market’s “regular” hours. Pre-market trading hours are available from 4am to 9:30am. After hours trading is available from 4pm to 8pm.
While it’s possible to trade in the pre-market and after-market, unless you know what you’re doing, you should probably stick to trading in normal hours. It’s easier to buy/sell then because trading volume is quite low in pre-market and after-hours trading which presents some unique challenges.
Why It’s Important To Know The Opening and Closing Times of the Stock Market
Often stocks will make their biggest moves within the first and last hours of the normal trading day. So from 9:30am to 10:30am and from 3pm to 4pm. For day traders and momentum investors who trade on short time frames, this is important to know. Because, if you’re looking to profit off of big swings in a stock, they will often happen in the first and last hours of the official trading day.
This is not always the case, of course. News or other events can happen at any time during that day that can cause big swings in a stock. But if you’re a short term trader, knowing when the stock market opens and closes and that big swings often happen around those times, can be very helpful.
