Breaking: Holiday hours will reshape trading this week. Expect thin liquidity, faster moves, and tighter execution windows. If you manage risk or cash, you have less time to act. Here is how the week sets up, and what it means for your money.
Stock market hours this week
U.S. stocks trade on regular hours today and Tuesday, 9:30 am to 4:00 pm Eastern. Pre-market and after-hours remain available through most brokers, but volumes are lighter.
On Wednesday, Christmas Eve, the NYSE and Nasdaq will close early at 1:00 pm Eastern. Pre-market sessions start as usual, but there is no standard after-hours session once the bell rings at 1:00 pm. The options pits match that early close. Many index products stop a few minutes later.
Christmas Day, Thursday, the equity markets are closed.
Friday, the markets reopen on normal hours, 9:30 am to 4:00 pm Eastern. Weekly options will trade and expire as usual on Friday.
Futures and fixed income use different clocks. CME equity index futures run a shortened schedule around the holiday. The U.S. bond market also observes early close conventions. If you trade across assets, check your venue’s calendar before placing orders.
Equities settle on T+1 in the U.S. A trade on Wednesday settles Friday, since Thursday is a holiday.
What this means for trading
Expect thinner order books and wider bid ask spreads, especially mid and small caps. Desks run light into holidays. That means price jumps can be larger on fewer shares. Algorithms can push prices around in quiet tapes. Your stop orders may fill at worse levels in fast gaps.
Use limit orders. Avoid market orders in the final minutes on Wednesday. Be careful with good till canceled orders that sit through the holiday. A headline on Thursday can set up a gap at Friday’s open.
For options, the Greeks move faster in thin tape. Skews can shift as dealers reduce risk. Wednesday’s early close lowers the time value you can harvest. Weekly contracts will decay across the holiday, then reprice at Friday’s open.
Liquidity drops around early closes. Spreads widen, slippage grows, and your fills may be worse than screens suggest.
Cash, settlement, and year-end moves
With T+1, cash from a sale on Tuesday is available Wednesday. A sale on Wednesday settles Friday. If you need cash in accounts before year end, plan around the holiday. Wire and ACATS timelines at brokers may also be limited.
Mutual funds key off the NYSE close. On Wednesday, most funds will price at the 1:00 pm close. Orders placed after that time get Friday’s NAV. ETF creations and redemptions will run on the exchange calendar. Bond funds may follow the bond market day, which can be different. Read your firm’s cutoff times.
Tax planning is in focus. Tax loss harvesting must be completed by December 31 for the 2025 tax year. Wash sale rules still apply. If you harvest on Friday, you have only two trading days next week before year end. Managers may also window dress into the final days, which can add noise to late day moves.
Settlement also affects corporate actions. Dividends and splits around the holiday can change ex dates and pay dates. Check notices from issuers and your broker.
How to position into Friday and into year end
Momentum can be sharp in quiet markets. The final stretch of December often brings a positive bias, but it is not guaranteed. The five sessions around the holiday can post outsized gains or fast reversals on small news. Macro data is light, so micro flows can control the tape.
Focus on liquidity quality, not just price. Mega caps and index ETFs usually trade cleaner in thin conditions. If you must trade smaller names, break orders into smaller clips. Watch implied volatility for Friday options, since Thursday’s holiday compresses the trading window but not the calendar clock.
Bond yields and the dollar will steer sectors if they move. Growth stocks tend to react first when yields shift. Rate sensitive groups like REITs and utilities can swing on small changes. Futures moves on the holiday can set tone for Friday’s open.
Quick checklist for the week:
– Confirm your broker’s early close cutoffs for equities, options, and funds.
– Switch to limit orders, widen tolerance, and reduce size near the bell.
– Review margin and borrowing levels before the holiday gap.
– Map settlement dates for cash needs and tax moves.
The bottom line
Markets are open today and Tuesday, close early at 1:00 pm on Wednesday, close all day Thursday, and reopen on normal hours Friday. Liquidity will be thin, spreads wider, and execution risk higher. Plan your entries and exits now, protect your downside, and let the calendar work for you, not against you.
