The stock market closes early on Christmas Eve

The stock market does not operate on a normal schedule on Christmas Eve. The New York Stock Exchange (NYSE) and the NASDAQ both close at 1 p.m. Eastern Time instead of their usual 4 p.m. closing time. This early close happens every year on December 24th, regardless of what day of the week it falls on.

If you use a brokerage app or website to trade stocks, you will not be able to place market orders after 1 p.m. on Christmas Eve. Some brokerages allow you to place orders that will execute the next trading day, but those orders will not fill until the market reopens on December 26th (since December 25th is Christmas, when the market is fully closed).

Key Takeaways

  • The NYSE and NASDAQ close at 1 p.m. Eastern Time on Christmas Eve, not at the usual 4 p.m.
  • You cannot place market orders after 1 p.m. on December 24th, though some brokerages accept orders for the next trading day.
  • The market is completely closed on Christmas Day and reopens on December 26th.
  • Pre-market and after-hours trading may have limited volume and wider bid-ask spreads on Christmas Eve morning.

Why the market closes early on Christmas Eve

The early close on Christmas Eve is a courtesy to traders and market participants who want to leave early for the holiday. The NYSE and NASDAQ have observed this schedule for decades. It is not a federal holiday closure — the market chooses to close early rather than staying open until 4 p.m.

This early close affects all stock trading on the major exchanges. Bond markets and futures markets may have their own schedules, so if you trade those products, check with your broker about their specific hours on December 24th.

What happens if you try to trade after 1 p.m. on Christmas Eve

If you attempt to place a market order after 1 p.m. Eastern Time on Christmas Eve, your brokerage will reject it or hold it for the next trading day. The exact behavior depends on your broker — some will show you an error message when ready, while others will queue the order and execute it when the market reopens on December 26th.

Limit orders (orders that execute only at a specific price or better) may be accepted and held, but they will not fill until the market is open again. Always check your brokerage's website or app for their specific rules on Christmas Eve trading, since policies vary by firm.

Pre-market trading on Christmas Eve morning

Pre-market trading does occur on Christmas Eve morning before the regular market opens at 9:30 a.m. Eastern Time. However, pre-market volume is typically much lighter than during regular hours, which means bid-ask spreads (the difference between buy and sell prices) tend to be wider. Your order may take longer to fill or may fill at a less favorable price.

If you need to trade on Christmas Eve, the safest window is between 9:30 a.m. and 1 p.m. Eastern Time, when the regular market is open and volume is normal. Avoid placing large orders in pre-market hours unless you are comfortable with the lower liquidity.

Planning ahead for the Christmas holiday

If you hold positions that concern you heading into the Christmas break, make any trades you need to make before December 24th. The market will be closed for two full days (December 25th and 26th is a weekend in most years, though the exact calendar varies), so you will have no opportunity to adjust your holdings until December 27th at the earliest.

Some traders use the early close on Christmas Eve as a reminder to review their portfolio and make sure they are comfortable holding their positions through the holiday. If you are new to trading, this is a good time to double-check that your orders are set up correctly and that you understand your broker's holiday schedule.

Other market closures and early closes during the year

Christmas Eve is not the only day the stock market closes early. The market also closes at 1 p.m. Eastern Time on the day after Thanksgiving (the day after the fourth Thursday in November). The market is fully closed on New Year's Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day, among others.

Your brokerage should have a calendar of all market holidays and early closes posted on their website. Checking this calendar before you plan a trade is a straightforward way to avoid surprises.

Frequently Asked Questions

Can I place an order on Christmas Eve after 1 p.m.?

You can attempt to place an order, but it will not execute until the market reopens. Most brokerages will either reject the order with an error message or hold it for the next trading day. Check your broker's specific policy before the market closes.

What time does the market open on December 26th?

The market opens at 9:30 a.m. Eastern Time on December 26th, the same as any other regular trading day. If you placed an order after 1 p.m. on December 24th, it may execute during this opening or shortly after, depending on the price and your broker's rules.

Does after-hours trading happen on Christmas Eve?

After-hours trading does not occur on Christmas Eve after the 1 p.m. close. The market is closed for the rest of the day. Regular after-hours trading resumes on December 26th after the 4 p.m. close.

Will my limit orders execute on Christmas Eve?

Limit orders placed before 1 p.m. may remain active and could execute if the price reaches your limit during regular hours. Orders placed after 1 p.m. will be held and may execute on December 26th if the conditions are met, but this depends on your broker's system.