Do Stock Markets Close on Weekends?

Are you wondering if stock markets close during weekends? Learn about US & foreign markets closing days & how holidays affect trading volume.

Do Stock Markets Close on Weekends?

Are you wondering if stock markets close on weekends? All major stock exchanges in the United States are open for trading during the week between normal business hours. However, negotiation does not take place on weekends. Major stock exchanges close during many of the same holidays (Thanksgiving, Christmas, etc.) and there are several days when the market ends its trading session ahead of time. Trading volume tends to fall immediately before the holidays and increases immediately after the holidays, which can add volatility to the market.

The stock market closes on New Year's Day, Martin Luther King, Jr. Day, President's Day (Washington's birthday), Good Friday, Memorial Day, National Independence Day, Independence Day, Labor Day, Thanksgiving and Christmas Day. Yes, both the New York Stock Exchange and the NASDAQ open on Veterans Day. The stock market holds a full day of trading on New Year's Eve even when New Year's Day happens on a weekend.

This is due to a provision of Rule 7.2 of the New York Stock Exchange which states that the New York Stock Exchange will close on Friday or Monday when a holiday falls on a weekend. However, a provision exists when there are “unusual” business conditions such as the end of a monthly or annual accounting period. Since New Year's Eve is the end of a month, quarter and year, markets remain open. The three major stock exchanges (NYSE, NASDAQ and the United States Stock Exchange) synchronize opening hours with other stock exchanges.

NYSE holidays are the same as NASDAQ holidays and they comply with the federal government's holiday closure schedule except for Veterans Day (open), Hispanic Heritage Day (open) and Good Friday (closed). When markets close, investors have more time to reflect on their investment strategies. An investor can read a financial diary to catch up on the latest news, read about insider trading, NASDAQ's top losers or marketing activity. Catching up with the latest market news will create an overview of what is happening and an investor could also improve their financial education by reading a dividend investment guide to learn more about stocks, trading volumes, the most active stocks or market liquidity.

Statistically, mood swings before and after the holidays can affect actions. Stock markets win the day before a holiday and trading volume can be ten times higher after a holiday but these notable market trends only occur if the holiday involves a long weekend. The other stock exchanges are the Boston Stock Exchange (BSE), the Chicago Board Options Exchange (CBOE), the Chicago Board of Commerce (CBOT), the Chicago Mercantile Exchange (CME), the Chicago Stock Exchange (CHX), the International Stock Exchange (ISE), the Miami Stock Exchange (MS4X), the National Stock Exchange Exchange (NSX) and the Philadelphia Stock Exchange (PHLX). NASDAQ is an acronym for the National Association of Securities Dealers Automated Quotations founded by the National Association of Securities Dealers (NASD) based in New York City which offered the world's first electronic exchange when it was launched on February 8th 1971 allowing investors to use computers to buy and sell shares quickly and transparently avoiding the need for a trading floor.

The summer months of June, July and August are known as “The Great Drought” since many people go on vacation during this time and August is considered to be one of worst months to trade in summer. The months of September to December are historically considered to be some of best trading months of the year since holidays don't slow down market operations and settlements usually take two business days after an order is executed. If you are an investor or trader with a position in foreign stocks remember that every country has its own stock market holiday schedule so a foreign stock exchange may be open on days when US markets are closed and vice versa. Depending on the country, same type of holiday may fall on different dates or holiday may be completely different such as Thanksgiving in US and Canada which falls on different dates - fourth Thursday of November in US but second Monday in October in Canada - while both are public holidays Canadian civic holiday is not legal so some people go to work while others take day off.

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