The stock market closes early on New Year's Eve

U.S. stock exchanges — the New York Stock Exchange (NYSE) and NASDAQ — close at 1 p.m. Eastern Time on New Year's Eve, rather than the standard 4 p.m. closing time. This early close happens every year on December 31st. The market does not open on New Year's Day (January 1st), so there is no trading for two consecutive calendar days.

If you hold stocks or have standing orders to buy or sell, you need to know this schedule because orders placed after 1 p.m. Eastern on December 31st will not execute until the market reopens on January 2nd. This matters most if you are trying to lock in a price before the year ends or if you have pending trades that depend on year-end timing.

Key Takeaways

  • The NYSE and NASDAQ close at 1 p.m. Eastern on New Year's Eve instead of 4 p.m., giving traders three fewer hours to trade.
  • The market is completely closed on New Year's Day, so no trading happens on January 1st.
  • Any buy or sell order you place after 1 p.m. Eastern on December 31st will wait until the market opens on January 2nd at 9:30 a.m. Eastern.
  • Futures markets and some international exchanges may have different hours, so check with your broker if you trade outside standard U.S. stock market hours.

Why the market closes early on New Year's Eve

The early close on New Year's Eve is a longstanding practice in U.S. financial markets. The exchanges set this schedule to give traders and staff time to observe the holiday while still allowing a full trading day. December 31st is one of only a handful of days each year when U.S. markets close before the standard 4 p.m. time.

The other day with an early close is the day after Thanksgiving (the Friday after the fourth Thursday in November), when markets close at 1 p.m. Eastern as well. On all other trading days, the NYSE and NASDAQ operate from 9:30 a.m. to 4 p.m. Eastern.

What happens to your trades and orders

If you have a standing order to buy or sell a stock and the market closes at 1 p.m., any order that has not filled by that time will remain open. Market orders — orders to buy or sell at the current price — will not execute after the close. Limit orders — orders to buy or sell only at a specific price or better — will carry over to the next trading day if the price target was not met.

Your broker's website or app will show you which orders are still pending. You can cancel any order before 1 p.m. on December 31st if you change your mind. After the market closes, you cannot cancel or modify orders until the market reopens on January 2nd, though some brokers allow you to place new orders during after-hours trading.

After-hours and futures trading on New Year's Eve

While the regular stock market closes at 1 p.m. Eastern on December 31st, some trading does continue. After-hours trading — trading that happens after the official close — typically runs until 8 p.m. Eastern on most days. However, on New Year's Eve, after-hours trading volume is usually very light, and bid-ask spreads (the difference between what buyers will pay and what sellers want) tend to widen, making trades more expensive.

Futures markets, which trade contracts based on stock indexes and commodities, have their own schedules. Most U.S. stock index futures close early on New Year's Eve as well, but the exact times vary by contract. If you trade futures, check your broker's holiday schedule or the exchange website for the specific close time for the contract you hold.

Planning ahead for year-end trading

If you need to make trades before the year ends for tax reasons or to rebalance your portfolio, plan to do so well before 1 p.m. Eastern on December 31st. Market volume is often lighter in the days leading up to New Year's, which can mean wider spreads and slower execution. Placing your order early in the trading day — ideally before 11 a.m. Eastern — gives you the best chance of getting the price you want.

If you are selling stocks to lock in losses for tax purposes (a strategy called tax-loss harvesting), remember that you must complete the sale by the 1 p.m. close on December 31st for it to count in that tax year. Trades that execute on January 2nd will be reported in the following year's tax documents.

International markets and other trading venues

If you trade stocks on exchanges outside the United States, those markets may have different holiday schedules. Many international exchanges close for the full day on New Year's Eve or operate on a different calendar altogether. For example, the London Stock Exchange closes at 11:30 a.m. GMT on December 31st, and some Asian exchanges may be closed or operating on reduced hours depending on local holidays.

If you hold American Depositary Receipts (ADRs) — shares of foreign companies that trade on U.S. exchanges — those trade on the NYSE or NASDAQ schedule, not the schedule of the company's home country. Check your broker's website for the holiday schedule of any specific exchange or security you trade.

Frequently Asked Questions

Can I place a trade after 1 p.m. on New Year's Eve?

You can place an order after 1 p.m., but it will not execute until the market reopens on January 2nd at 9:30 a.m. Eastern. Some brokers allow after-hours trading until 8 p.m., but volume is very low and spreads are wider, so you may not get the price you want.

What if I forget and try to sell a stock at 2 p.m. on December 31st?

Your order will be queued and will execute when the market opens on January 2nd, assuming the price conditions are met. If you placed a market order, it will sell at whatever price the stock opens at on January 2nd, which could be different from the price on December 31st.

Do I need to do anything special to prepare for the early close?

No special action is required. Just remember the 1 p.m. close time if you plan to trade. If you have pending orders, check your broker's app to see their status before the market closes.

Is the market open on January 1st?

No. The market is closed on New Year's Day. Trading resumes on January 2nd at 9:30 a.m. Eastern, assuming that day is not a weekend.

Do bond markets and cryptocurrency exchanges follow the same schedule?

Bond markets (Treasury bonds and corporate bonds) follow a similar schedule to stocks and close early on New Year's Eve. Cryptocurrency exchanges operate 24/7 and do not close for holidays, so you can trade Bitcoin, Ethereum, and other cryptocurrencies at any time on December 31st and January 1st.