What Was the Stock Market Schedule in December 2020?
The stock market schedule in December 2020 was shaped by a combination of regular trading hours and adjustments for the holiday season. The U.S. stock exchanges, including the New York Stock Exchange (NYSE) and NASDAQ, maintained their standard operating hours, but specific dates in December reflected early closures and full-day market holidays. Below, we provide a detailed overview of the stock market’s December 2020 schedule, including trading hours for key holiday dates and market performance insights.
Regular Trading Hours for December 2020
The standard operating hours for the U.S. stock market remained the same throughout December 2020 on regular trading days:
- Opening Time: 9:30 AM Eastern Time (ET)
- Closing Time: 4:00 PM Eastern Time (ET)
These hours applied from Monday to Friday, with the exception of specific holidays and early closures during the month. The stock exchanges operated as normal during non-holiday weekdays, allowing investors and traders to conduct their business during regular hours. However, for key holiday dates, the schedule differed slightly, as outlined below.
December 2020 Holiday Schedule: Key Dates
Thursday, December 24, 2020 – Christmas Eve
On Christmas Eve, the U.S. stock market followed an early closure schedule:
- Early Closure Time: 1:00 PM ET
The NYSE and NASDAQ both closed early at 1:00 PM ET, allowing traders to complete their transactions before the holiday. This early closure is a common practice on Christmas Eve to give market participants a shortened trading session ahead of the Christmas holiday.
The U.S. bond market also adhered to an early closure on Christmas Eve, shutting down at 2:00 PM ET, slightly later than the stock market. This timing provided investors with additional time for bond trading before the holiday break.
Friday, December 25, 2020 – Christmas Day
On Christmas Day, the stock market was completely closed in observance of the holiday. No trading took place on Friday, December 25, 2020, as both the NYSE and NASDAQ remained closed for the full day. This closure applied to all U.S. financial markets, including stock, bond, and futures markets, as part of the standard holiday observance.
Thursday, December 31, 2020 – New Year’s Eve
Despite being New Year’s Eve, the stock market adhered to its regular schedule on December 31, 2020:
- Regular Market Hours: 9:30 AM ET to 4:00 PM ET
The NYSE and NASDAQ were open for the entire trading session on New Year’s Eve, allowing investors to conduct their final trades of the year before the holiday festivities began.
Friday, January 1, 2021 – New Year’s Day
Although not technically part of December 2020, it is important to note that the stock market was closed on New Year’s Day (Friday, January 1, 2021), as is customary. No trading occurred, and the market resumed regular hours on Monday, January 4, 2021.
Market Performance in December 2020
The U.S. stock market ended 2020 on a strong note, with major indices posting gains in December despite the global challenges posed by the COVID-19 pandemic. Investor sentiment was buoyed by several factors, including the rollout of vaccines, ongoing stimulus measures, and optimism about economic recovery in the coming year.
S&P 500
The S&P 500 index closed at a record high on the final trading day of December 2020. For the entire year, the index gained nearly 16.3%, reflecting a robust recovery from the steep market declines experienced earlier in the year due to the pandemic. December saw continued strength, with the index benefiting from positive economic news and an improving outlook for 2021.
Dow Jones Industrial Average
The Dow Jones Industrial Average (DJIA) also ended 2020 on a high note, closing at a record high on December 31, 2020. The Dow gained approximately 7.2% over the course of the year, with significant progress made in December due to the expectation of a broad economic rebound. Strong performance in key sectors such as technology, healthcare, and financials contributed to the index’s gains.
NASDAQ
The NASDAQ Composite, driven heavily by technology stocks, posted an exceptional performance in 2020. In December, the NASDAQ continued its upward trajectory, benefiting from the enduring strength of Big Tech companies such as Apple, Amazon, Microsoft, and Tesla. For the year, the NASDAQ was up nearly 44%, marking one of its best performances in recent history.
Russell 2000
The Russell 2000, an index that tracks small-cap stocks, faced some volatility in late December. While other indices posted gains, the Russell 2000 experienced a slight decline of 1.45% for the week ending December 31, 2020. Despite this, the index had a strong year overall, gaining over 18% in 2020, with small-cap stocks benefiting from the optimism surrounding a broad economic recovery.
Conclusion: December 2020 Market Highlights
The U.S. stock market’s December 2020 schedule was largely in line with previous years, with regular trading hours interspersed with early closures for holidays such as Christmas Eve and full-day closures on Christmas Day. Despite these shortened trading sessions, the stock market finished the year with remarkable gains across major indices.
December 2020 was a pivotal month for the U.S. stock market, as investors remained optimistic about the upcoming economic recovery and the vaccine distribution effort. Major indices, including the S&P 500, Dow Jones, and NASDAQ, closed the year at record highs, while the Russell 2000 showed resilience despite some late-year volatility.
As we reflect on the stock market schedule and performance in December 2020, it is clear that the market demonstrated significant strength and resilience in the face of global challenges, setting the stage for further growth in the coming year.