The Stock Market's Transition to 24/7 Trading
The stock market's traditional 9:30-to-4 workday, marked by opening and closing bells dating back to the 1870s, is quickly becoming outdated.
Historical Context and Change
This shift toward continuous trading is the most significant transformation in market structure since electronic trading replaced the physical trading floor.
Market Adaptation and Drivers
Wall Street is adapting to the always-on approach found in cryptocurrency and prediction markets to satisfy a new generation of retail traders who prefer nonstop market access.
Major exchanges, including the NYSE and Nasdaq, aim to expand trading hours to 22 and 24 hours daily, with some platforms planning to launch these extended hours before the end of the year.
Influences Behind the Shift
- Retail investors now constitute at least 20% of daily U.S. trading volume.
- There is a growing global demand for American equities, valued in the trillions.
A version of this article originally appeared in Quartz’s members-only Weekend Brief newsletter.
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"The stock market's genteel 9:30-to-4 workday, complete with opening and closing bells that date back to the 1870s, is becoming as anachronistic as the headsets still worn on the New York Stock Exchange floor."
"The shift — driven by surging retail investor participation... represents the most fundamental change to market structure since electronic trading replaced the trading floor."
Author’s summary: The move toward 24/7 trading marks a historic evolution in the stock market, driven by increased retail participation and global demand for U.S. equities.