NYSE and American flag
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Is the Stock Market Closed July 5? Holiday Observance, Explained

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Jul. 1 2021, Published 11:38 a.m. ET

The stock market follows a set schedule of hours when trading is open. Both the Nasdaq and the New York Stock Exchange operate Monday through Friday throughout the year, with the exception of several holidays. Bond markets also take trading holidays.

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Since July 4 falls on a Sunday in 2021, the markets will be closed the day after the holiday. Investors will get a break from following the markets on July 5. The markets will be closed to observe the Independence Day holiday.

Why the stock market is closed on July?

July 4 is the actual Independence Day holiday. However, when a holiday falls on a weekend, the day before or after the official date is observed as a stock market holiday. Therefore, July 5 is an observed stock market holiday in 2021.

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independence day  stock market
Source: Pixabay

When is the stock market usually open?

On regular trading days, the NYSE and the Nasdaq follow the same hours. Trading opens at 9:30 a.m. ET and closes at 4:00 p.m. ET on weekdays except on holidays.

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Investors might also be aware that certain trades take place outside regular market hours. After-hours trading occurs between 4:00 p.m. ET and 8:00 p.m. ET on weekdays. There’s usually a much lower volume of trading during the after-hours session. Investors can buy and sell stocks using electronic communication networks, or ECNs.

There's also a period before the regular stock markets open when certain trades are allowed. Some retail brokers permit pre-market trading, which is lower in volume and liquidity and occurs between 8:00 a.m. ET and 9:30 a.m ET.

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Early closures of the stock market in 2021

On select dates each year, the markets might close early instead of following their normal hours of 9:30 a.m. ET to 4:00 p.m. ET. 

The Friday before Independence Day (July 2), the bond markets will close early at 2:00 p.m. ET.

Later in the year, on the Friday after Thanksgiving, markets will be open, but they will close early. Both the Nasdaq and NYSE will close at 1:00 p.m. ET that day and the bond markets will close at 2:00 p.m. ET.

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For 2021, New Year’s Eve is a Friday and the NYSE and Nasdaq will be open for trading. However, bond markets will close at 2:00 p.m. ET on that date.

stock market holidays  explained
Source: istock
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Other stock market holidays in 2021

The complete schedule of stock market holidays for 2021 includes these dates on which the NYSE and Nasdaq markets are fully closed.

  • New Year’s Day: January 1
  • Martin Luther King Jr. Day: January 18
  • President’s Day/Washington’s Birthday: February 15
  • Good Friday: April 2
  • Memorial Day: May 31
  • Independence Day (Observed): July 5
  • Labor Day: September 6
  • Thanksgiving Day: November 25
  • Christmas Eve (Christmas Day Observed): December 24

On certain other dates in 2021, the bond markets are closed while the NYSE and Nasdaq remain open:

  • Columbus Day: October 11
  • Veterans Day: November 11

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