Nasdaq Plans 24-Hour Trading for U.S. Stocks, Signaling Major Market Shift

Nasdaq, one of the world's leading stock exchanges, has announced plans to introduce 24-hour trading for U.S. companies, marking a significant evolution in the American financial markets. The move, slated for implementation in the second half of 2026, aims to modernize the market and cater to growing global investor demand for U.S. equities.

Extended Trading Hours to Meet Global Demand

Nasdaq President Tal Cohen revealed the ambitious initiative in a recent LinkedIn post, emphasizing the pivotal moment facing U.S. markets. "The global growth of investor demand for US equities means we stand at another pivotal moment for our markets—to broaden investor access, expand wealth-building opportunities and redefine how markets function," Cohen stated.

The proposed 24-hour trading model will operate five days a week, dramatically extending the current trading window of 9:30 a.m. to 4 p.m. ET. This expansion is driven by surging international interest in U.S. stocks, particularly from the Asia-Pacific region. Cohen highlighted that total foreign holdings of U.S. equities reached $17 trillion in June 2024, representing a staggering 97% increase from 2019.

Regulatory Hurdles and Market Integrity

While the extended trading hours promise increased accessibility, the initiative faces several challenges before implementation. The plan is pending regulatory approval, and Nasdaq acknowledges the need for careful and deliberate planning to maintain market integrity.

"While the promise of round-the-clock trading can make our markets more accessible, it also demands careful and deliberate planning," Cohen emphasized. He stressed that any structural change must uphold liquidity, transparency, and integrity—core principles of the U.S. financial markets.

Corporate Concerns and Market Oversight

A recent Nasdaq survey of listed companies revealed cautious sentiment among corporate issuers regarding the 24/5 trading model. Primary concerns revolve around liquidity and corporate action implications. Cohen addressed these apprehensions, stating, "While overnight trading occurs today without the oversight, transparency and resilience that exchanges can bring, once exchanges choose to participate as trading venues, corporate issuers will expect a materially improved experience for their investors."

The move by Nasdaq follows a similar initiative by the New York Stock Exchange, which recently received SEC approval to extend its trading hours from 1:30 a.m. ET to 11:30 p.m. ET. These developments signal a broader shift in U.S. financial markets, moving away from the traditional 9:30 a.m. to 4 p.m. ET trading schedule that has been in place since 1985.