For investors and financial professionals, understanding the operational schedule of major stock markets during holiday periods is crucial for informed decision-making and strategic planning. Specifically, on Christmas Eve 2025, which falls on a Wednesday, the major U.S. stock exchanges, the New York Stock Exchange (NYSE) and NASDAQ, will be open 1.
However, trading will operate on a half-day schedule, with an early close at 1:00 p.m. Eastern Time (ET) 1. This deviates from the regular trading hours which typically extend until 4:00 p.m. ET 1. Consequently, the trading session on December 24, 2025, will be from 9:30 a.m. ET to 1:00 p.m. ET 1. The U.S. bond market will also observe an early closure on this day, with markets closing at 2:00 p.m. ET 2. These altered schedules are significant for market participants, requiring adjustments to trading strategies, order placements, and settlement processes to avoid potential disruptions and capitalize on reduced liquidity periods.
The summary of the trading schedule for Christmas Eve 2025 is as follows:
| Exchange | Date | Status | Trading Hours (Eastern Time) |
|---|---|---|---|
| NYSE and NASDAQ | December 24, 2025 | Open | 9:30 a.m. to 1:00 p.m. |
| U.S. Bond Market | December 24, 2025 | Open | Early close at 2:00 p.m. |
The operation of US stock markets on Christmas Eve, particularly when it falls on a weekday, is marked by a long-standing tradition of early closure rather than a full shutdown 3. This practice is deeply rooted in the history of organized trading in the United States, extending over a century and aligning with the New York Stock Exchange's (NYSE) founding in 1792. The NYSE has historically observed major religious and civic holidays in synchronization with the banking sector to ensure effective trade settlement 3. This historical alignment underscores the critical need for financial institutions, especially banks, to be operational for capital movement related to trade settlements, as holidays are not considered business days and can delay settlement periods 3.
Historically, on Christmas Eve when it occurs on a weekday, US equity markets, including the NYSE and Nasdaq, typically conclude trading early at 1:00 PM ET . This early closing protocol encompasses NYSE American Equities, NYSE Arca Equities, NYSE National, and NYSE Texas late trading sessions, which conclude at 5:00 PM, while over-the-counter trading also ceases at 1:00 PM ET 4. The US bond market, guided by recommendations from the Securities Industry and Financial Markets Association (SIFMA), generally extends trading an hour longer than equity markets, closing at 2:00 PM ET on Christmas Eve . Both stock and bond markets observe a full closure on Christmas Day . The regulatory bodies, NYSE and Nasdaq, officially dictate their holiday and trading hours through their calendars, and these schedules have shown remarkable consistency over time, with future schedules, such as for 2025, mirroring those of prior years .
The primary rationale for these half-day trading sessions on Christmas Eve is to accommodate market participants 3. The shortened trading period allows individuals time to travel and prepare for the holiday festivities 3. This accommodation, however, results in significantly lower trading volumes and reduced market liquidity 3. These conditions create what are known as "thin markets," characterized by institutional desks operating with minimal staffing or "skeleton crews" 3. The reduced participation can lead to wider spreads—the difference between bid and ask prices—and an increased risk of price volatility. Sudden news events on such low-volume days can cause disproportionately large price movements due to fewer orders available to absorb market shocks 3. While US markets observe December 26 as a standard trading day, many Commonwealth markets remain closed for Boxing Day, which can contribute to lower volumes in US markets on that day as international institutional investors are offline 3.