The stock market is closed on July 5 because it is Independence Day in the United States

The New York Stock Exchange (NYSE) and the NASDAQ close on July 4 each year to observe Independence Day. When July 4 falls on a weekday, the market reopens the next trading day. When July 4 falls on a weekend, the market observes the holiday on the nearest weekday — if July 4 is a Saturday, the market closes on Friday July 3; if July 4 is a Sunday, the market closes on Monday July 5.

This means July 5 is a market holiday only in years when July 4 falls on a Sunday. In most years, the market is open on July 5. You can check the current year's holiday schedule on the NYSE website or your brokerage's calendar to confirm whether July 5 is a trading day.

Key Takeaways

  • The stock market closes on July 4 every year to observe Independence Day, regardless of which day of the week it falls on.
  • When July 4 is a Sunday, the market observes the holiday on Monday July 5 and remains closed.
  • When July 4 is a Saturday or weekday, July 5 is a regular trading day.
  • Your brokerage publishes its holiday calendar each year, which shows exactly which days the market will be closed.

How the market handles holidays that fall on weekends

The NYSE and NASDAQ follow a consistent rule: when a federal holiday falls on a Saturday, the market closes on the preceding Friday. When a federal holiday falls on a Sunday, the market closes on the following Monday. This rule applies to all federal market holidays, not just Independence Day.

For example, if Thanksgiving (always a Thursday) were observed on a different day, or if Christmas fell on a weekend, the market would shift its closure accordingly. The goal is to give the market one full day off for each holiday, whether or not that holiday is a weekday.

What happens to your orders when the market is closed

If you place an order to buy or sell stock while the market is closed, your order enters a queue and executes when the market reopens. Most brokerages allow you to place orders during after-hours trading (typically 4 p.m. to 8 p.m. Eastern time) or before-hours trading (typically 7 a.m. to 9:30 a.m. Eastern time), but these sessions have lower volume and wider bid-ask spreads than regular trading hours.

On a market holiday, after-hours and before-hours trading may also be closed or limited. Check your brokerage's specific rules before assuming you can trade around a holiday closure.

The full list of annual market closures

The NYSE and NASDAQ close on the same days each year. The standard holidays are New Year's Day (January 1), Martin Luther King Jr. Day (third Monday in January), Presidents' Day (third Monday in February), Good Friday (varies), Memorial Day (last Monday in May), Independence Day (July 4), Labor Day (first Monday in September), Thanksgiving Day (fourth Thursday in November), and Christmas Day (December 25).

The market also closes early — at 1 p.m. Eastern time instead of 4 p.m. — on the day after Thanksgiving and on Christmas Eve (if Christmas Eve is a weekday). No trading occurs on these days after 1 p.m.

How to find your brokerage's specific holiday schedule

Each brokerage publishes its own holiday calendar, usually on its website under "Market Hours" or "Trading Calendar." The major brokerages (Fidelity, Charles Schwab, E-Trade, Robinhood, and others) all follow the NYSE and NASDAQ closures, but some may have additional restrictions or different after-hours policies.

If you plan to trade around a holiday, log into your account and check your brokerage's calendar directly. This takes 30 seconds and removes any doubt about whether you can place an order.

Why the market closes for holidays

The stock market closes on federal holidays for the same reason most U.S. businesses do: to give workers a day off and to honor the significance of the holiday. A secondary reason is that lower trading volume on holidays would make the market less efficient and more volatile. Closing entirely prevents unusual price swings driven by thin trading rather than genuine supply and demand.

The NYSE has closed on Independence Day since the 1800s, making it one of the oldest and most consistent market holidays.

Frequently Asked Questions

Can I trade on July 5 if July 4 is a weekday?

Yes. The market is open on July 5 in any year when July 4 is a Monday, Tuesday, Wednesday, or Thursday. Only when July 4 falls on a Sunday does the market close on Monday July 5.

What if I have a standing order set to execute on a market holiday?

Your order will not execute on the holiday. It will remain in your queue and execute on the next trading day at the price and conditions you specified, unless you cancel it first. Some brokerages let you set an expiration date on orders to prevent them from executing days later than you intended.

Do international stock markets close on July 4?

No. The London Stock Exchange, Tokyo Stock Exchange, and other international markets remain open on July 4 because it is not a holiday in their countries. If you trade international stocks or ETFs, you can still trade them on July 4 during U.S. after-hours sessions, though volume will be lower.

Is the bond market also closed on July 4?

Yes. The bond market, the commodities markets, and the futures markets all close on the same federal holidays as the stock market. Treasury bonds, corporate bonds, and all fixed-income securities stop trading when the NYSE closes.