The stock market closes early on New Year's Eve

The New York Stock Exchange and Nasdaq both close at 1 p.m. Eastern time on New Year's Eve, instead of the usual 4 p.m. closing time. This early close happens every year on December 31st. If you hold stocks or have pending orders, you need to know this schedule because the market will not process trades after that time.

The bond market also closes early on New Year's Eve — at 2 p.m. Eastern time. Futures markets and forex markets have their own schedules, which differ from stock market hours. If you trade in multiple asset types, check each market's holiday schedule separately.

The market is completely closed on New Year's Day (January 1st). No trading happens at all that day. Regular trading hours resume on January 2nd, assuming that day is a weekday.

Key Takeaways

  • The stock market closes at 1 p.m. Eastern time on New Year's Eve instead of 4 p.m., giving you three fewer hours to trade.
  • If you want to place a trade on New Year's Eve, you must do so before 1 p.m. Eastern time or your order will not execute that day.
  • The market is fully closed on New Year's Day, and regular hours resume the next trading day.
  • Bond markets close at 2 p.m. Eastern time on New Year's Eve, one hour after stocks, so check your specific market if you trade multiple asset types.

What time you need to place trades before the early close

If you use a brokerage app or website, you can place orders up until 12:59 p.m. Eastern time on New Year's Eve. After 1 p.m., the market will not accept new orders for that day. Any order you submit after the close will be queued for the next trading day, which is January 2nd.

Market orders (orders to buy or sell when ready at the current price) must be placed before 1 p.m. to execute on New Year's Eve. Limit orders (orders that execute only at a specific price you set) can be placed anytime, but they will not fill until the market reopens if the price is not reached before 1 p.m.

If you have automatic investments set up through your brokerage — such as a recurring contribution to a mutual fund or index fund — check with your broker about how they handle New Year's Eve. Some brokerages process automatic trades before the early close; others delay them until January 2nd. Contact your brokerage directly if you are unsure.

How the early close affects after-hours trading

After-hours trading does not happen on New Year's Eve. Normally, some brokerages allow trading from 4 p.m. to 8 p.m. Eastern time after the regular market close. On December 31st, this extended session does not open at all.

If you have an order set to execute during after-hours trading, it will not go through on New Year's Eve. Your broker may automatically cancel it, or it may roll over to January 2nd depending on how you set it up. Check your order settings or call your broker if you have standing after-hours orders.

Planning ahead if you need to trade on New Year's Eve

If you know you want to make a trade on New Year's Eve, set a reminder for yourself to place it before noon Eastern time. The early close catches many people off guard, especially those in time zones west of New York who may not realize how little time remains.

If you cannot trade before 1 p.m. on December 31st, your next opportunity is January 2nd during regular hours (9:30 a.m. to 4 p.m. Eastern time). Prices may move between the close on December 31st and the open on January 2nd, so if you are waiting to trade, be prepared for a gap in price.

Some traders avoid placing large orders on New Year's Eve because trading volume is lower and bid-ask spreads (the difference between buy and sell prices) can be wider. If you are selling or buying a large position, you may get a less favorable price in the thin trading of late December 31st.

Other markets and their New Year's Eve schedules

Cryptocurrency exchanges typically stay open on New Year's Eve and New Year's Day because they operate 24/7. If you trade crypto, you can buy and sell at any time, though prices may be more volatile around the holiday.

Futures markets (such as E-mini S&P 500 futures) have their own close times on New Year's Eve. Most close at 4 p.m. Central time on December 31st, which is one hour after the stock market close. Forex markets close at 5 p.m. Eastern time on December 31st. If you trade these instruments, verify the exact close time with your broker or the exchange.

International stock exchanges have their own holiday schedules. If you hold stocks on foreign exchanges, check whether they are open on December 31st in their local time zone. Many close early or remain closed on New Year's Eve.

What happens to your existing positions over the holiday

If you own stocks, bonds, or funds, they remain in your account over the New Year's Eve and New Year's Day closure. You cannot sell them during the closure, but you also cannot be forced to sell them. Your positions are frozen at the last price from December 31st until the market reopens on January 2nd.

Dividends and interest payments scheduled for January 1st or 2nd will still be processed on their scheduled dates, even though the market is closed. Your brokerage handles these payments behind the scenes.

If you have a stop-loss order (an order to sell automatically if the price drops to a certain level), it will not trigger during the market closure. If the price gaps down when the market reopens on January 2nd, your stop-loss may execute at a price lower than you set it for.

Frequently Asked Questions

Can I place orders on my brokerage app after 1 p.m. on New Year's Eve?

You can place orders after 1 p.m., but they will not execute on December 31st. Your broker will hold them and process them on January 2nd when the market reopens. If you want to trade on New Year's Eve itself, you must submit your order before 1 p.m. Eastern time.

What if I forget and try to trade after the market closes?

Your order will be rejected or queued for the next trading day, depending on your broker. You will not lose money, but you will miss the chance to trade at December 31st prices. The order will sit until January 2nd unless you cancel it.

Does the early close happen every year on December 31st?

Yes. The stock market closes at 1 p.m. Eastern time every New Year's Eve, regardless of what day of the week it falls on. This is a standing rule, not something that changes year to year.

What if January 1st falls on a weekend?

The market is still closed on January 1st. If January 1st is a Saturday or Sunday, the market is already closed for the weekend, so the holiday closure overlaps with the regular weekend. Trading resumes on the next weekday.

Can I trade stocks on my phone during the early close?

You can open your brokerage app and place an order anytime, but it will only execute if you submit it before 1 p.m. Eastern time. After 1 p.m., the market will not accept new orders for that day, even if you are using your phone.