U.S. Stock Market Holiday Schedule: Closures, Early Trading, and Essential Strategies for Hong Kong Investors

Summary: The US stock market has around 10 full-day holidays and 2 to 3 early-closing days each year. Hong Kong investors should pay close attention to the transition between Daylight Saving Time (DST) and Standard Time, as the US market opens at 9:30 pm Hong Kong time during DST, and at 10:30 pm during Standard Time. This article provides a complete holiday calendar and a Hong Kong time conversion table to help you plan your trading strategy.

Investing in US stocks has become an important way for Hong Kong investors to diversify their portfolios. However, US market trading hours and holiday schedules differ quite significantly from those of the Hong Kong market, and the shift between DST and Standard Time often adds to the confusion. Knowing the US market holiday schedule not only helps you avoid missed trading opportunities but also allows you to make better decisions during volatile periods around holidays. This article details all US market holidays, early closing arrangements, and a Hong Kong time zone conversion table to provide practical guidance for Hong Kong investors.

US Stock Market Holiday Schedule

The US stock market is dominated by three main exchanges: the New York Stock Exchange (NYSE), Nasdaq, and the American Stock Exchange (AMEX). The main US stock exchange holidays generally follow US federal holidays. Here are the major holiday dates:

Note: Juneteenth became a new federal holiday in 2021, commemorating the end of slavery in the US in 1865.

Holiday Adjustment for Weekends

If a holiday falls on a weekend, the US stock market substitutes another day as a holiday. When the holiday falls on a Saturday, the market closes on the preceding Friday; if it falls on a Sunday, the closure is carried forward to Monday. For instance, if Independence Day (July 4) falls on a Saturday, the market will close on Friday, July 3.

US Stock Market Early-Closing Days

In addition to full-day holidays, the US market has 2 to 3 early-closing days each year, with the market closing at 1:00 pm US Eastern Time—three hours earlier than usual. These early closures typically occur on:

• The day before Independence Day: If July 4 is a workday, the market closes early on July 3;
• The day after Thanksgiving: Known as "Black Friday," the fourth Friday in November;
• Christmas Eve: December 24, the day before Christmas.

Trading Features of Early-Closing Days

Trading volume on early-closing days is usually lower, as many institutional investors and traders are already away for the holidays. This can result in:

• Wider bid-ask spreads
• Greater price volatility
• Lower liquidity, making large trades harder to execute

Hong Kong investors are advised to take a more conservative approach on these days, avoiding overnight positions or large trades.

US Market Trading Hours and Hong Kong Time Conversion

Regular US stock market hours are Monday to Friday, 9:30 am to 4:00 pm US Eastern Time, with no lunch break. Because the US observes DST and Standard Time, the corresponding Hong Kong times change accordingly.

Daylight Saving Time (March to November)

DST starts on the second Sunday in March and ends on the first Sunday in November each year.

Standard Time (November to March)

Standard Time begins on the first Sunday in November and ends on the second Sunday in March the following year, shifting all sessions one hour later.

Note: Be especially aware of time changes during the DST/Standard Time switch to avoid missing market open or close.

Pre-market and After-hours Trading Sessions

In addition to regular trading hours, the US market also offers pre-market and after-hours trading, allowing investors to trade before the market officially opens or after it closes.

Features of Pre-market Trading

Pre-market trading allows investors to respond to overnight developments, such as corporate earnings or significant news events, before the regular session starts. For Hong Kong investors, the pre-market session falls in the afternoon to evening, which is relatively convenient.

Features of After-hours Trading

After-hours trading mainly serves to react to corporate earnings or breaking news released after the market close. However, liquidity is typically lower, and bid-ask spreads are often wider.

Notes on Extended-hours Trading

• Not all stocks are available for pre-market or after-hours trading;
• Volume is much lower than during regular hours, so prices are more volatile;
• Some brokers may charge extra fees or place specific restrictions on extended-hours trading.

Practical Tips for Hong Kong Investors Trading US Stocks

Now that you understand the US stock market holiday schedule, Hong Kong investors can use the following strategies to optimize trading:

Set up a Trading Calendar

Add US market holidays to your personal calendar and highlight early-closing days. This will help you:

• Avoid confusion by not trying to trade when the market is closed
• Adjust your positions ahead of holidays
• Capture market opportunities on the first trading day after a holiday

Take Advantage of Cross-market Time Differences

The difference between US and Hong Kong trading hours can be advantageous for Hong Kong investors. After monitoring the Hong Kong market and news during the day, you can adjust your strategy in time for the US market open.

Watch Market Trends Around Holidays

Specific market patterns often appear around US market holidays:

• Before holidays: Trading volumes tend to drop, and some investors may reduce positions.
• After holidays: "Catch-up" moves may occur, especially if significant news emerged during the break.

Make use of real-time market data tools to stay on top of market changes.

Frequently Asked Questions

Is the US stock market open on weekends?

The US market is closed on both Saturday and Sunday, with no trading taking place. Regular trading runs from Monday through Friday only.

Can I place orders when the US market is closed?

Some brokers allow you to place orders while the market is closed, which will be executed when the market opens on the next trading day. However, be aware that the opening price may differ significantly from your expectations.

Do US stock markets close during Hong Kong public holidays?

US market holidays are based on US federal holidays and are unrelated to Hong Kong public holidays. The US market may remain open when Hong Kong has a public holiday, and vice versa.

When do DST and Standard Time take effect?

DST starts at 2:00 am on the second Sunday in March each year (clocks go forward one hour), while Standard Time begins at 2:00 am on the first Sunday in November (clocks go back one hour).

Conclusion

Understanding the US market holiday schedule is crucial for Hong Kong investors. The US market has around 10 full-day holidays and 2 to 3 early-closing days each year. The switch between DST and Standard Time also affects actual trading hours. It's recommended that investors check the latest holiday schedules regularly and incorporate them into their investment planning.

Which trading tools to use depends on your investment objectives, risk tolerance, market outlook, and experience. No matter what investment instrument you choose, make sure you fully understand how it works, its risks, and its trading rules, and that you have a solid risk management plan. You can learn more investment knowledge from the Longbridge Academy or by downloading the Longbridge App.