There are many stock exchanges worldwide where traders buy and sell various securities. The stock market acts as a platform that listed companies can use to raise capital. Given the nature of the world economy and the underlying conditions after the pandemic, there are enough reasons to invest in markets outside the India’s stock market.
When choosing to invest in a different stock market, getting the stock market timings right accordingly to your time zone is essential. In this article, we will discuss the US stock market timings in India.
What Is The US Stock Market?
The US stock market allows traders and investors alike to buy and sell stocks of some of the world’s biggest companies. The overall performance of the US stock market often serves as a barometer for the country’s economic health. The terms “stock market” and “stock exchange” are often used interchangeably.
The US stock market is regulated and controlled by the primary regulators which include the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) [1].
The leading US stock exchanges include the New York Stock Exchange (NYSE) and the NASDAQ (National Association of Securities Dealers Automated Quotation).
The prices of stocks in the stock market can reflect the performance of a company, as well as the current state of the economy. In times of economic challenges such as recessions, stock prices are likely to fall and the stock market could see added volatility.
Trading The US Stock Market?
Diversification
- As an investor, your portfolio may be exposed to domestic macroeconomic and geopolitical investment risks when investing in stocks listed in one single stock market. Having a well-diversified investment portfolio is one of the ways to potentially reduce risk and investing in US stock market could be a good start.
Global Reach
- The US stock markets are truly global, as companies from around the world can be listed on the NYSE and NASDAQ. An example of such is Alibaba Group Holding Limited. This Chinese multinational technology company which specialises in e-commerce is listed on the NYSE. This provides investors access to an international market. Other major stocks known around the world are also listed on the US stock market, such as Tesla, Netflix, Amazon, Microsoft, Apple and more.
S&P 500 Index
- The S&P 500 Index is based on the NYSE and NASDAQ’s market capitalisation of the listed companies. This index is regarded as one of the best gauges of stock market performance [2]. The companies in the index are selected based on the market-cap weighting method, which gives a higher percentage allocation to companies with the largest market capitalisation. The S&P 500 also combines large companies across various industries, allowing investors to access a broad, diversified mix of companies when investing in exchange-traded funds that track the S&P 500 Index.
What US Stock Market Are Available To Trade?
New York Stock Exchange (NYSE)
- The NYSE is located on New York’s Wall Street and is one of the largest stock exchanges in the world by market capitalisation [3]. The NYSE started as a modest operation under a buttonwood tree in Manhattan and is now known worldwide as a symbol of Wall Street. The NYSE also acts as a trading hub or central marketplace for companies to list their shares and raise capital from interested investors.
NASDAQ Stock Exchange
- NASDAQ is also based in New York City and is ranked as the second-largest stock exchange by market capitalisation. It is designed to enable investors to buy and sell stocks on an automatic, transparent and speedy computer network. The NASDAQ is also well-known as one of the major stock exchanges for its high-tech stocks, such as Apple (APPL), Microsoft (MSFT) and Tesla (TSLA).
US Stock Market Timings or Trading Hours
The US stock market trading hours can be classified into three segments that work in different trading schedules and objectives. The timing of the trading hours is also dependent on a few variables, such as:
Eastern Standard Time (EST)
- This timing is observed during the autumn and winter months in New York. This timing is 5 hours behind the Coordinated Universal Time (UTC-5).
Eastern Daylight Time (EDT)
- This timing is observed during the summer and spring seasons in New York. This timing is 4 hours behind the Coordinated Universal Time (UTC-4).
Eastern Timing (ET)
- The time zone observed on the East Coast, and it is not static but switches between EDT and EST.
- The NYSE and Nasdaq stock exchanges adhere to the US Stock Market trading hours and operate from Monday to Friday, except on holidays. Here is the timing of the market hours for both the stock market:
Timing | NYSE (ET) | NASDAQ (ET) |
Pre-market trading hours | 4.00 AM to 9.30 AM | 4.00 AM to 9.30 AM |
Normal trading hours | 9.30 AM to 4 PM | 9.30 AM to 4 PM |
After hours trading | 4.00 PM to 8 PM | 4.00 PM to 8 PM |
The timing in the table above is referenced from the NYSE and NASDAQ website [4,5]
US Stock Market Timing in India
The table will help give traders more insights into the US stock market timing in India based on the EST and EDT:
US EST stock market timing in India
EST timing is followed in New York in the autumn and winter months. The Indian Standard Time (IST) is 10 hours and 30 minutes ahead of EST.
EST Timings | NYSE (IST) | NASDAQ (IST) |
Pre-market trading hours | 2.30 PM to 8.00 PM | 2.30 PM to 8.00 PM |
Normal trading hours | 8.00 PM to 2.30 AM | 8.00 PM to 2.30 AM |
After hours trading | 2.30 AM to 6.30 AM | 2.30 AM to 6.30 AM |
US EDT Stock Market Timing in India
EDT timing is followed in the summer and spring months. The Indian Standard Time (IST) is 9 hours and 30 minutes ahead of EST.
EDT Timings | NYSE (IST) | NASDAQ (IST) |
Pre-market trading hours | 1.30 PM to 7.00 PM | 1.30 PM to 7.00 PM |
Normal trading hours | 7.00 PM to 1.30 AM | 7.00 PM to 1.30 AM |
After hours trading | 1.30 AM to 5.30 AM | 1.30 AM to 5.30 AM |
US Stock Market Holidays
Here are some of the US stock market key holidays on which the stock market will be closed or have shortened working hours:
Exchange Holidays and Occasions | Day | Date |
New Year’s Day | Monday | 02 January 2023 |
Martin Luther King, Jr. Day | Monday | 16 January 2023 |
Washington’s Birthday | Monday | 20 February 2023 |
Good Friday | Friday | 07 April 2023 |
Memorial Day | Monday | 29 May 2023 |
Juneteenth National Independence Day | Monday | 19 June 2023 |
Independence Day | Tuesday | 04 July 2023 |
Labor Day | Monday | 04 September 2023 |
Thanksgiving Day | Thursday | 23 November 2023 |
Christmas Day | Monday | 25 December 2023 |
The information in this article, including the dates and timings, is subject to change from time to time and are intended for educational purposes only. Vantage assumes no liability to the accuracy, completeness, suitability and timeliness of the information in this article. You are encouraged to verify the information with the latest updates from the official sources.
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- “What Is the Stock Market, What Does It Do, and How Does It Work? – Investopedia”. https://www.investopedia.com/terms/s/stockmarket.asp . Accessed 08 Nov 2022
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- “S&P 500 Index: What It’s for and Why It’s Important in Investing – Investopedia”. https://www.investopedia.com/terms/s/sp500.asp . Accessed 08 Nov 2022
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- “Largest Stock Exchanges In The World – Daytradingz”. https://daytradingz.com/largest-stock-exchanges-in-the-world/ . Accessed 08 Nov 2022
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- “Market Information – NYSE”. https://www.nyse.com/markets/nyse-arca/market-info . Accessed 08 Nov 2022
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- “Trading Hours for the Nasdaq Stock Markets – NASDAQ”. https://www.nasdaq.com/stock-market-trading-hours-for-nasdaq . Accessed 08 Nov 2022