Here’s all you need to know about the US stock market!

The US stock market is one of the oldest stock exchanges of the world and is popularly known as the “mother market”. Founded in late 1700s, the US stock market capitalization is now over USD 40 trillion. Being the topmost and mature market, the US stock exchanges are often looked by the investors to understand the global economic activities. Interestingly, most of the emerging market funds come from the US. Over 50% of the US population is now actively involved in stock market activities, which makes it the center of attraction in the financial world. 

US Stock market timings: 

The stock market of US typically runs from 9.30 AM to 4 PM as per the Eastern Time (ET). Unlike the Indian stock exchange, the US stock market also has pre-market trading hours and after-market trading hours. Pre-market trading is conduct between 4 AM to 9.30 AM (ET) and after-market trading hours are 4 PM to 8 PM (ET).  

All the three major indices of the US stock market, i.e., Dow Jones Industrial Average, NASDAQ Composite and S&P500 follow the US market timings. Trading does not happen during the weekends.

The US stock market timings is based on Eastern Time zone (ET). The ET is further subdivide into two variables, i.e., Eastern Standard Time (EST) and Eastern Daylight Time (EDT) 

EST – EST is followed in New York, Washington DC, Florida, and other US cities. It is 5 hours behind the Greenwich Mean Time (GMT)  

EDT – EDT is followed in summer and spring months in US cities. It is 4 hours behind the Greenwich Mean Time (GMT)  

US Stock market timings as per Indian Standard Time: 

For the market watchers, it is important to understand when the exchanges open as per the Indian standard time. Here’s a table that would help you in getting a better idea of opening and closing time of various stock exchanges.  

  US Stock market holidays:

During national holidays, memorial days and festive seasons, the US markets are shut or may have truncated working hours. Here’s a list of US stock market holidays:

* Each market will close early at 1 PM, while the cross session orders will be accepted beginning from 1 PM till 1.30 PM. 

Interestingly, if the given holiday falls on Saturday, the day before (Friday) becomes a stock market holiday. On similar lines, if a given holiday falls on Sunday, then the day after (Monday) becomes a stock market holiday.

Here’s are some commonly asked questions related to the US markets:

1.       How many holidays are there for the US markets in 2023? 

There are a total of 10 holidays which includes 2 partial holidays for the US Markets. 

2.      What happens if the holiday falls during a weekend?  

Unlike Indian markets, the holiday is observed a day before (Friday) if it falls on Saturday, and the day after (Monday) if it falls on Sunday.  

3.       Can there be any unexpected holidays for the US stock market? 

Yes, there can be newly announced holidays for the US stock market, which is also updated on the NYSE website.  

4.       Will markets remain closed on Thanksgiving Day?  

Thanksgiving Day shall be observed on November 23, 2023. The US stock exchanges shall see partial holiday on this day.  

5.       What is the Dow Jones opening time in IST? 

Dow Jones Industrial Average opens at 7 PM IST and closes at 1.30 AM IST.  

6.       Can I invest in US stocks from India? 

Yes, you can invest directly by opening an overseas trading account with a foreign broker, or via an overseas trading account with a domestic broker. Alternatively, you can also invest in US stocks via mutual funds and ETFs. 

7.       At what time can I buy US stocks from India? 

US stocks can be bought only between 7 PM IST to 1.30 AM IST.   

8.       Can I place a limit order to buy US stocks? 

The brokers provide facility for limit order traders during the market hours.