Stock Market Closed Days

Have you ever found yourself rushing to your computer thinking you are missing the action in the stock market just to realize a few moments later that the stock market is closed on that day ?

Whether you have experienced the above scenario or you are planning ahead for well deserved break from stock market, we bring you this quick outlook on Stock Market Closed Days from 2020 to 2023 as they are set to take place around major US holidays.

Stock Market Closed Days | Knowing the Stock Market Trading Hours

The year 2020 saw an increased number of retail traders joining the stock market following the impact of the pandemic.

Hence Many newcomers are still getting familiar with the specificities of the stock market including the stock market hours of operations.

Huge Spike in New E*TRADE and Robinhood accounts from March 2020

The numbers from of the above Tweet from a Wall Street Journal article are pretty staggering.

Over 200 000 additional new accounts on ETRADE trading platform alone.

Given that millennials are more likely to prefer hyped Robinhood and Webull, once can only imagine the number of new traders in the stock market.

Maybe you happen to be one of those new traders I regularly come across in our Discord Channel at Successful Tradings.

For you and the rest of those who do not know, the regular trading hours of the stock market are Monday through Friday from 9:30AM to 4:00 PM Eastern.

Make the necessary adjustment should you like on the West Coast in California for instance like yours truly or in the other side of the Globe in Singapore.

If you are a trader you like to follow the action even after the market closes, here are some extra times to know about.

After hours trading can be important during Earnings season when stocks announce their quarterly financial results.

Typically, these events create a spike in volatility that traders can take advantage of.

However, liquidity is usually an issue in after hours trading meaning that the spreads (distance from bid to Ask price) can be quite large.

Special Hours for ETFS Options

It is worth mentioning that for Options Traders, when it come to ETFs (Exchange Traded Funds) in the likes of SPY, QQQ, IWM or DIA, one can trade them until 4:15 PM Eastern time each on each weekday.

We have numerous traders still being confused about this fact simple because their brokers have restrictions in place that prevent them for taking advantage of the extra 15 minutes.

Stock Market Closed Days - SPY, QQQ, IWM, DIA Options can trade until 4:15 PM Eastern
SPY, QQQ, IWM and DIA some ETFS That Trade Options until 4:15 PM Eastern

Of course, with options trading, we need to be aware of the risk involved by taking a position that late on expiration days.

Just as a reminder, SPY is the only ETF featuring 3 Expirations Days each week on Mondays, Wednesday and Fridays.

We have share in our SPY Trading System article how you can take advantage of this as an Options Trader.

Stock Market Closed Days | US Stock Markets Holidays

US stock market closed days are in general dictated by the Federal Holidays.

All major institutions tend to observe these and the stock market is no exception.

There has been rare circumstances where the stock market was closed exceptionally due to the death of a former President for instances.

I can recall Wednesday December 5 2018 was a closed day as Former President George H. W. bush was laid to rest.

The market took a pause in observance of the National day of Mourning for the former President.

Outside of those circumstances, there are about 9 Federal holidays that lead to Stock market being closed.

Here is a full table summarizing these dates between 2020 and 2023.

Stock Market Closed Days2020202120222023
New Year’s DayJanuary 1stJanuary 1stN/AJanuary 2nd
Martin Luther King, Jr DayJanuary 20 thJanuary 18thJanuary 17thJanuary 16th
Washington’s BirthdayFebruary 17thFebruary 15thFebruary 21stFebruary 20th
Good FridayApril 10thApril 2ndApril 15thApril 7th
Memorial DayMay 25thMay 31stMay 30thMay 29th
Independence DayJuly 3rdJuly 5thJuly 4thJuly 4th
Labor DaySept 7thSept 6thSept 5thSept 4th
Thanksgiving DayNovember 26thNovember 25thNovember 24thNovember 23rd
Christmas DayDecember 25thDecember 24thDecember 26December 25th
Table of Stock Market Closed Days from 2020 to 2023

How Do Holidays Affect Traders in the Stock Market

Most studies have shown that market generally tends to be bullish round the holidays.

Perhaps we can attribute that to the emotions and psychology of the holidays.

However, given that the majority of the trading is done by computers nowadays, it will be interesting to find out if this trend prevails over the next few years and decades to come.

How Should traders and Investors Spent the time away

When stock markets are closed, investors and traders alike have a unique opportunity to take a step back to re-assess their position.

A cool and calm head is more suitable to make sound decisions rather than in the head and grind of the day-to-day action.

There are tools and platforms available to conduct research and analysis.

Here is a review of Simply Wall Street we shared here recently.