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. ⏰
Words to know
- market hours
- The times the main stock market is open for trading.
- after-hours trading
- Trading that happens once the main market has closed, with far fewer people.
- opening price
- The price of the first trade when the market opens.
- closing price
- The price of the last trade before the market closes.
- gap
- A jump between one day's closing price and the next day's opening price.
Try it — no account needed
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
- 1Sort into groups
- 2Put it in order
- 3Make the call
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