4 things to know about US stock market timings
If you are an investor in the US markets, it is important to know the US stock market timings. Today technology has made it possible for Indian investors to invest in the US stock markets in an easy manner. In this article, we tell you four things you need to know about US stock market operating hours.
1. Regular trading hours
The US stock market exchanges, mainly the New York Stock Exchange (NYSE) and Nasdaq open at 9.30am and close at 4.00pm ET (Eastern time), a time zone which includes the Eastern states of US and parts of Canada. The stock markets remain closed on weekends and holidays.
There are also some market half-days every year. They may either include July 3 or July 5 or fall on the day after Thanksgiving and/or on Christmas eve depending on the calendar. On these half-days, the Nasdaq and NYSE close at 1 pm ET.
2. US stock market timings according to India
When you are investing from India, it is important to adjust for the time difference between US and India. As per Indian Standard Time (IST), NYSE and Nasdaq open at 8 pm and close at 2.30am. However, this changes during the year due to the daylight saving time (DST).
3. Daylight saving time
One thing you need to note about US stock market timings is the impact of daylight saving time when America sets its clocks ahead by an hour. DST starts on the 2nd Sunday of March and continues till the 1st Sunday of November. During this period, the US stock markets open at 7 pm IST and shut at 1:30am IST. For the rest of the year, the US stock markets open later at 8 pm IST and closes at 2..30 am IST.
4. Pre-market and after-hours trading hours
In the US trading is allowed even outside the regular hours. The pre-market trading time is from 8 am to 9.30 am ET, while after-hours trading starts from 4 pm ET and continues till 8 pm ET. However, you should be aware of the risks associated with trading in the pre-market and after-hours time as it is associated with low liquidity, low volume of participants, and volatility. Whether you will be able to invest pre-market or after-hours depends on the investing platform you use.
However, one should note that while it is important to know the stock market timings, a long-term investor does not need to follow the markets on a daily basis.