Happy New Year! The stock market is open on New Year’s Eve 2020, but the bond markets will be closing early. Both stock and bond markets are closed on New Year’s Day, January 1, 2021. The New York Stock Exchange and Nasdaq Stock Market are typically closed on holidays.
Here’s what you need to know:
The Stock Market Is Open for a Full Trading Session on New Year’s Eve & Closed New Year’s Day
The stock market will be open for a full trading session on New Year’s Eve, December 31, 2020. However, the stock market will be closed for the holiday on New Year’s Day, January 1, 2021, according to Kiplinger. On New Year’s Eve, bond markets will close at 2 p.m. Eastern time.
“The stock market is indeed open for a full trading session on New Year’s Eve, Thursday, Dec. 31, 2020,” Kiplinger reported. “But for what it’s worth, bond traders do get a slightly shortened day; the bond markets will close up shop a little early, at 2 p.m. ET. The upshot? Friday, New Year’s Day, is a holiday for the stock and bond markets alike.”
The regular trading hours for the New York Stock Exchange (NYSE) and Nasdaq Stock Market are 9:30 a.m. to 4 p.m. Eastern on weekdays. The stock markets close at 1 p.m. on early-closure days and bond markets close early at 2 p.m., Kiplinger reported. See the full list of 2021 stock market holidays here.
The Stock Market Crash of 2020 Ended With Promising Returns for Investors As the Year Comes to a Close
The year 2020 was full of twists and turns, and that was reflected in the stock market. Investors are expecting 2021 will be another year of surprises, but experts are hopeful that the economy will recover after stock prices surged in 2020 in the midst of a pandemic and economic crisis, Forbes reported.
“The year that brought so many surprises is shaping up to be a surprisingly good one for investors, and that’s a timely reminder for 2021,” Forbes reported. “The S&P 500 is hovering near an all-time high, on track for better-than-average returns for 2020 and in the midst of a bull market—all of which might seem downright boring if you didn’t know the full story. This feat, however, is even more remarkable given the shocking speed and severity of the market’s crash earlier in the year.”
The S&P 500 made its quickest descent ever into a bear market, dropping 34% over just 33 days of 2020, Forbes reported. Then stock prices skyrocketed, and reached a new record high in mid-August.
“Heading into a new year, investors need to remember both the highs and lows of 2020’s wild ride. Wall Street strategists say stock prices are headed higher, but they caution that there’s likely to be continued volatility in 2021—as well as the potential for more surprises,” Forbes reported.
To forecast how the year will take shape, investors will be monitoring factors including progress on the COVID-19 vaccine, political gridlock in Washington, D.C., the second stimulus package and federal efforts to keep interest rates low, the news outlet reported.