timothy sykes logo

Stock News

Is the Stock Market Open on Christmas Eve?

Timothy SykesAvatar
Written by Timothy Sykes

With the small-cap market blazing hot and Christmas coming up, traders and investors are gearing up for the holiday season and the unique holiday trading hours. Whether you’re planning a last-minute trade or preparing for the year-end Santa Claus rally, understanding the stock market holiday schedule is essential. Here’s everything you need to know about market closures, trading sessions, and how to navigate this year’s Christmas holiday trading hours.

Stock Market Holiday Hours for Christmas Eve and Christmas Day 2024

The stock market holiday schedule can be a bit tricky around major holidays like Christmas. Here’s a quick breakdown of the hours of operation for the NYSE, Nasdaq, and bond markets this season:

Christmas Eve (Tuesday, December 24):

  • Regular stock market trading hours are shortened, with stock exchanges like the NYSE and Nasdaq closing early at 1 p.m. ET.
  • The bond market observes a slightly later closure at 2 p.m. ET.

Christmas Day (Wednesday, December 25):

  • All financial markets in the United States, including the NYSE American Equities and bond trading platforms, will be closed in observance of the holiday.

Trading resumes during regular hours on Thursday, December 26.

For those tracking global markets, note that some foreign stock exchanges may observe different holiday schedules, so check the list of stock market holidays for your region.

What to Expect During Holiday Trading Sessions

The days leading up to Christmas Eve often feature reduced trading volume as institutional traders, individual investors, and even bond traders step away for family celebrations. This reduced activity can result in limited liquidity, making it crucial to exercise caution during these trading sessions.

However, pre-market trading and extended-hours trading sessions still offer opportunities for avid investors looking to capitalize on actionable news and last-minute trading activity. Keep an eye on patterns emerging during the Pre-Opening Session or aftermarket hours trading, as they can signal potential moves during the regular session.

More Breaking News

The Santa Claus Rally: Will We See It This Year?

The Santa Claus rally refers to a historical trend of rising stock prices during the final five business days of the year and the first two trading sessions of the new year. Defined by Yale Hirsch in the Stock Trader’s Almanac, this phenomenon has delivered an average 1.3% gain in the S&P 500 since 1950.

Why Does the Santa Claus Rally Happen?

  • Tax-Loss Selling: Many institutional brokers and individual investors sell underperforming stocks for tax benefits, creating fresh buying opportunities.
  • Holiday Optimism: The season often brings a psychological boost to the markets, reflected in both equity securities and bond auctions.

If you’re trading during this period, focus on auction-eligible symbols with strong news catalysts or stocks showing significant momentum during extended trading hours.

The January Effect

Following the Santa Claus rally, the January effect often leads to a rebound in small-cap stocks and penny stocks. This trend is fueled by investors reinvesting in stocks sold off for tax purposes in December.

How to Trade the January Effect in the Stock Market

  • Look for stocks hitting their bargain price during limited liquidity periods in December.
  • Focus on companies showing actionable news or insider trades that could lead to a rally in January.
  • Use stock screeners to identify auction-eligible symbols with strong potential for price recovery.

How to Approach Holiday Trading Sessions

Trading during the holiday calendar requires a balance of preparation and flexibility. Here’s how to stay ahead:

  1. Know the Hours: Be aware of pre-market and after-hours trading availability, especially during shortened business hours. Platforms like Interactive Brokers or NYSE Arca Equities can provide extended access.
  2. Stick to Your Plan: Don’t let the reduced activity during holiday trading sessions tempt you into forcing trades. Follow your regular trading hours strategy and maintain discipline.
  3. Watch for Catalysts: Use a stock screener to find stocks with news-driven momentum during pre-market trading hours or continuous trading.
  4. Stay Patient: Liquidity decreases during major stock exchange closures, so avoid chasing moves in illiquid trading environments.

Conclusion

Whether you’re trading during the shortened hours of operation on Christmas Eve or planning for the next big move in January, the holiday season offers unique opportunities. By understanding the stock market holiday schedule, monitoring extended trading hours, and leveraging trends like the Santa Claus rally, you can position yourself for success during this pivotal time in the markets.

There are more than enough runners in the small-cap market …

And those are just the runners that are in play from last week …

And there will be more to add to the list …

Get in the chat to see the hottest runners right now!

I’ve been traveling in a different time zone trying to capitalize on all of these plays, and it’s taking a toll on my health.

Take a look at my post on X below:

Take enough time for yourself …

And put the pedal to the metal when you’re in front of the market!

There are so many opportunities to profit right now. Good luck this week!

Stay safe, trade smart, and enjoy the holidays!

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”