The stock market closes early at 1:00 PM EST on Christmas Eve 2025 (Wednesday, December 24) and remains completely closed on Christmas Day (Thursday, December 25). This early closure applies to all major U.S. exchanges including the NYSE and NASDAQ.
Christmas Eve 2025 Trading Hours
Wednesday, December 24, 2025:
- Market Opens: 9:30 AM EST (normal time)
- Market Closes: 1:00 PM EST (3.5 hours early)
- Bond Market: Also closes at 1:00 PM EST
Thursday, December 25, 2025:
Why Does the Stock Market Close Early on Christmas Eve?
The early Christmas Eve closure is a longstanding tradition designed to allow market participants and exchange employees to prepare for the holiday. This practice reflects several key factors:
Reduced Trading Activity: Christmas Eve historically sees significantly lower trading volumes, often dropping to just 20% of normal levels. The combination of institutional investors stepping away early and retail investors focused on holiday preparations creates an environment where maintaining full trading hours becomes less practical.
Holiday Effect Pattern: Research shows that pre-holiday trading exhibits unique characteristics, with lower liquidity and increased volatility due to reduced participation. The early closure helps maintain orderly markets during this period of diminished activity.
Complete 2025 Holiday Schedule for Stock Market
| Holiday | Date | Market Status |
|---|---|---|
| New Year’s Day | January 1, 2025 | Closed |
| Martin Luther King Jr. Day | January 20, 2025 | Closed |
| Presidents Day | February 17, 2025 | Closed |
| Good Friday | April 18, 2025 | Closed |
| Memorial Day | May 26, 2025 | Closed |
| Juneteenth | June 19, 2025 | Closed |
| Independence Day | July 4, 2025 | Closed |
| Day Before Independence | July 3, 2025 | Early Close (1:00 PM) |
| Labor Day | September 1, 2025 | Closed |
| Thanksgiving Day | November 27, 2025 | Closed |
| Black Friday | November 28, 2025 | Early Close (1:00 PM) |
| Christmas Eve | December 24, 2025 | Early Close (1:00 PM) |
| Christmas Day | December 25, 2025 | Closed |
Christmas Eve Trading Patterns & Market Behavior
Volume Characteristics: Christmas Eve represents one of the lowest volume trading days of the entire year. Historical data shows trading volumes typically drop to approximately 20% of normal levels, making it one of the quietest days alongside Boxing Day.
Pre-Holiday Effect: Academic research documents a consistent “pre-holiday effect” where stock returns on days immediately before major holidays tend to be higher than average. This pattern has been observed across multiple decades and markets worldwide, with pre-holiday returns often being seven to ten times larger than typical trading days.
Santa Claus Rally Connection: Christmas Eve marks the beginning of the famous “Santa Claus Rally” period, which encompasses the last five trading days of December through the first two trading days of January. Since 1950, the S&P 500 has averaged a 1.3% gain during this seven-day window and has been positive 79% of the time.
International Market Considerations
While U.S. markets close early on Christmas Eve, global market coordination varies significantly. European markets typically follow similar patterns with early closures or full holiday schedures, while Asian markets may maintain regular hours since Christmas is less universally observed.
Indian Markets: The NSE and BSE in India remain closed on December 25 for Christmas but do not observe Christmas Eve as a trading holiday.
Planning for Christmas Eve Trading
For Active Traders: The reduced liquidity on Christmas Eve can lead to increased price volatility and wider bid-ask spreads. Position adjustments should ideally be completed before this period to avoid execution challenges.
For Long-term Investors: The Christmas period often represents a natural time for portfolio review and tax-loss harvesting before year-end. However, any necessary transactions should be planned well in advance of the holiday closures.
Settlement Considerations: Trades executed on December 23 (the last full trading day before Christmas Eve) will settle on December 27, as Christmas Day interrupts the normal T+2 settlement cycle.
Bond Market Schedule
The bond market follows a similar but slightly different schedule during the Christmas period:
- December 24: Early close at 2:00 PM EST
- December 25: Completely closed
- December 31: Early close at 2:00 PM EST for New Year’s Eve
Key Takeaways for 2025
Christmas Eve (December 24) falls on a Wednesday in 2025, making it a mid-week early closure. The stock market will operate for only 3.5 hours instead of the usual 6.5 hours, closing at 1:00 PM EST. Christmas Day (December 25) falls on Thursday, ensuring a complete market closure followed by a normal Friday trading session on December 26.
This schedule allows market participants to enjoy the holiday while maintaining the structural integrity of the trading system. The early closure reflects decades of tradition balancing market accessibility with practical holiday considerations for the financial industry workforce.
Understanding these Christmas trading patterns helps investors and traders make informed decisions about their market activity during one of the most significant holiday periods of the year. Whether participating in potential Santa Claus Rally opportunities or simply ensuring proper portfolio management, awareness of these schedules is essential for effective market participation.
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