Market Holidays

Is the Stock Market Closed on Independence Day? July 4th Trading Hours Explained

Independence Day is one of the most important federal holidays in the United States. Here's everything traders and investors need to know about July 4th market closures and trading schedules.

5 min readMarket Holidays Guide

!Quick Answer

Yes, the U.S. stock market is closed on July 4th Independence Day.This includes the New York Stock Exchange (NYSE), NASDAQ, and most major U.S. exchanges. Bond markets are also typically closed. When July 4th falls on a weekend, the market closure is observed on the adjacent weekday.

Which Markets Are Closed on July 4th?

Independence Day is a federal holiday in the United States, and as such, most financial markets observe this closure. Here's a comprehensive breakdown of what's closed on July 4th:

Major U.S. Stock Exchanges (CLOSED)

  • New York Stock Exchange (NYSE)
    Fully closed
  • NASDAQ Stock Market
    Fully closed
  • American Stock Exchange (AMEX)
    Fully closed
  • Chicago Board of Trade (CBOT)
    Fully closed
  • Chicago Mercantile Exchange (CME)
    Fully closed

Bond Markets (CLOSED)

  • U.S. Treasury Securities
    No trading
  • Corporate Bonds
    No trading
  • Municipal Bonds
    No trading
  • SIFMA Guidelines
    Bond markets follow SIFMA recommendations

When July 4th Falls on a Weekend

When Independence Day falls on a Saturday or Sunday, the market closure is observed on the adjacent weekday to ensure a three-day weekend:

Weekend Observance Rules

Saturday July 4th:
Markets closed Friday, July 3rd
Sunday July 4th:
Markets closed Monday, July 5th

What About International Markets?

While U.S. markets are closed, international markets continue trading as normal on July 4th:

Open International Markets

  • London Stock Exchange (LSE)
    Normal hours
  • Tokyo Stock Exchange (TSE)
    Normal hours
  • Hong Kong Exchange (HKEX)
    Normal hours
  • Australian Securities Exchange (ASX)
    Normal hours
  • European Markets
    Normal trading schedules

!Note: Trading volumes may be lower due to reduced U.S. participation.

Forex Market on July 4th

The foreign exchange (forex) market operates differently from stock markets. While it's a 24-hour market, trading activity is significantly reduced on July 4th due to:

Forex Market Impact

  • Reduced liquidity from U.S. banks and institutions
  • Lower trading volumes
  • Potential for increased volatility due to thin markets
  • Many U.S.-based forex dealers may have limited operations

Cryptocurrency Markets

Cryptocurrency markets operate 24/7 and do not close for Independence Day. However, you may notice:

Crypto Market Considerations

  • Reduced trading volume from U.S. participants
  • Less institutional activity
  • Customer support from U.S.-based exchanges may be limited

Historical July 4th Market Performance

Historically, the trading sessions before and after July 4th can exhibit unique characteristics:

Pre-Holiday Trading (July 3rd)

  • Often shortened trading sessions
  • Lower volume as traders prepare for the long weekend
  • Potential for reduced volatility

Post-Holiday Trading (July 5th)

  • Markets may open with gaps due to overnight international news
  • Volume typically returns to normal levels
  • Catch-up trading on news that occurred during the closure

Planning Around July 4th Market Closure

Smart traders and investors prepare for Independence Day market closures by considering these factors:

Before the Holiday

  • Review positions:
    Assess your portfolio for any risks during the closure
  • Set stop-losses:
    Consider protective orders before markets close
  • Plan cash needs:
    Ensure adequate liquidity for the long weekend
  • Check international exposure:
    Monitor positions in markets that remain open

During the Closure

  • Stay informed about global economic developments
  • Monitor international markets for potential impacts
  • Prepare for potential gaps when markets reopen
  • Use the time for portfolio analysis and planning

Other U.S. Market Holidays to Remember

Independence Day is one of several federal holidays when U.S. markets close. Other major market holidays include:

Fixed Date Holidays

  • New Year's Day (January 1)
  • Independence Day (July 4)
  • Christmas Day (December 25)

Variable Date Holidays

  • Martin Luther King Jr. Day
  • Presidents' Day
  • Good Friday
  • Memorial Day
  • Labor Day
  • Thanksgiving Day

Key Takeaways

  • U.S. stock markets are fully closed on July 4th Independence Day
  • Bond markets also close following SIFMA recommendations
  • International markets remain open with potentially lower volumes
  • Forex markets operate but with reduced liquidity
  • Cryptocurrency markets continue 24/7 operations
  • Plan ahead for the market closure to manage risk effectively

Understanding market schedules is crucial for successful trading and investing. Independence Day represents one of the most significant market closures in the U.S. financial calendar, affecting everything from stock trading to bond markets.

For real-time market schedules and holiday information, bookmark ourmarket holidays calendar to stay informed about upcoming closures and plan your trading activities accordingly.