Lately, an interesting trend has been emerging in the U.S. stock market: the largest exchanges are beginning to transition to round-the-clock trading. Nasdaq, known for its focus on technology, has announced plans to introduce 24-hour trading five days a week, starting in the second half of 2026. This decision is no coincidence—it is driven by the growing interest of retail investors and foreign holders of U.S. stocks.
According to Nasdaq President Tal Cohen, their long-term investments in technology and infrastructure will enable a stable and reliable 24-hour trading experience for market participants and investors. Nasdaq has already begun consultations with regulators and other key stakeholders on this matter.
This announcement follows a similar move by the NYSE, which in October last year announced plans to extend trading hours to 22 hours a day, five days a week—running from 1:30 AM to 11:30 PM Eastern Time. The NYSE, owned by Intercontinental Exchange, explained that a short break is necessary to ensure smooth transaction processing. Last month, the NYSE received SEC approval and hopes to implement its plan this year.
Unlike the NYSE, Nasdaq has not yet submitted its proposal for SEC review.
One of the catalysts for these changes was Robinhood, which successfully introduced 24-hour trading on select stocks in May 2023. Robinhood CEO Vlad Tenev believes that round-the-clock trading is the future of the market, especially considering the popularity of cryptocurrencies like Bitcoin, which trade 24/7.
Tenev also highlights the importance of 24-hour trading for risk management. He believes that the ability to adjust positions and hedge risks on Sunday evening before the market opens on Monday is crucial for investors.
For traders looking to stay competitive and adapt to these changes, tools like ZipLime are becoming increasingly relevant. ZipLime allows traders to run algorithms in real time and adjust parameters directly on the platform. This convenience is especially valuable in a 24-hour trading environment, where every minute counts.
The rise in foreign investments in U.S. stocks also plays a significant role in this transition. As of June 2024, the total value of foreign holdings in U.S. stocks reached $17 trillion, a 97% increase compared to 2019. These figures indicate that the global investment landscape is truly evolving, forcing major exchanges to adapt.
Overall, the shift to 24-hour trading is a move that could significantly reshape the market and open new opportunities for investors. It’s not just a matter of convenience—it’s a matter of competitiveness in a world where global markets are becoming increasingly interconnected.
