Wall Street is gearing up for a significant shift in trading hours, with Nasdaq and the New York Stock Exchange (NYSE) planning to extend trading to nearly 24 hours a day, five days a week. This move aims to cater to global investors, particularly those outside the US, who want to trade US stocks during their own business hours. The proposed structure includes a day session from 4 a.m. to 8 p.m. Eastern Time, followed by a one-hour break, and a night session from 9 p.m. to 4 a.m. the next morning.
The push for extended trading hours is driven by increasing global demand for US equities, with foreign holdings of US stocks reaching $17 trillion last year. While this move may offer more flexibility, it also raises concerns about liquidity, volatility, and operational challenges for institutions and listed companies. Major Wall Street banks are cautious, citing potential risks and uncertainties.
