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Reading a business

Lesson 85 · Written for kid, teen, and little

Market Hours and Overnight Surprises

The market has set hours, and prices can jump while it is shut.

The idea

The main US stock exchanges are open on weekdays from 9:30 in the morning until 4:00 in the afternoon, New York time, and they close on weekends and on certain holidays. Many brokers also allow trading before and after those hours, but far fewer people are trading then, so spreads get wider and prices can swing more. When important news arrives while the market is shut, a stock can open at a very different price from where it closed. That jump is called a gap. ⏰

A

Words to know

5

market hours

The regular NYSE stock session is 9:30 a.m. to 4 p.m. Eastern on trading days. Holidays and early closes are exceptions; other sessions have different hours.

after-hours trading

Trading that happens once the main market has closed, with far fewer people. Fewer buyers means wider spreads and jumpier prices.

opening price

The price of the first trade when the market opens. It can be far from yesterday's close.

closing price

The price of the last trade before the market closes. It is the number reported on the news that evening.

gap

A jump between one day's closing price and the next day's opening price. Close at $50, open at $54, and that is a $4 gap.

Try it — no accountSort into groups

Regular market hours run from 9:30 in the morning to 4:00 in the afternoon, New York time.

It is a weekday. Sort these times into regular market hours and outside regular hours.

0 / 6 sorted

In the full lesson

  1. 1Sort into groups
  2. 2Put it in order
  3. 3Make the call

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