Wall Street Never Sleeps: Nasdaq Pushes for Almost 24/7 Trading

• Nasdaq (NDAQ) has formally proposed extending weekday trading hours for U.S.-listed equities and exchange-traded products to 23 hours, from the current 16 hours, with a day session from 4 a.m. to 8 p.m. Eastern Time and a night session from 9 p.m. to 4 a.m., including a one-hour daily pause, targeting a launch in the second half of 2026 pending SEC approval.
• The initiative responds to growing global investor demand and competition from platforms like Robinhood (HOOD), while aligning with the New York Stock Exchange’s plans for 22-hour trading.
• Critics highlight potential risks, including diluted liquidity outside peak periods, increased volatility, greater speculative activity, and operational challenges for institutions and listed companies in managing continuous coverage and information dissemination.

Nasdaq’s (NDAQ) recent proposal to extend trading hours for U.S.-listed equities and exchange-traded products represents a significant evolution in market structure, driven by increasing global demand for access to American stocks outside traditional U.S. business hours. The exchange plans to file with the Securities and Exchange Commission to enable trading for 23 hours each weekday, expanding from the current 16 hours, with a potential launch in the second half of 2026 if approved.

The proposed structure includes a day session running from 4 a.m. to 8 p.m. Eastern Time, incorporating existing pre-market hours from 4 a.m. to 9:30 a.m., the core session from 9:30 a.m. to 4 p.m., and after-hours from 4 p.m. to 8 p.m. This would be followed by a one-hour break for maintenance, testing, and clearing, after which a night session would operate from 9 p.m. to 4 a.m. the next morning. Such a framework aims to provide near-continuous access five days a week while preserving a brief daily pause essential for operational integrity.

This development aligns with broader industry trends, as platforms like Robinhood (HOOD) have already introduced extended or near-24-hour trading for select stocks and cryptocurrencies, catering to retail investors seeking flexibility to respond to international events. Similarly, the New York Stock Exchange has advanced plans for 22 hours of weekday trading, having secured initial SEC approval in February contingent on necessary data-feed enhancements.

However, the initiative has drawn sharp criticism from market participants concerned about its implications for stability and efficiency. Observers note that liquidity predominantly concentrates around the opening and closing periods, raising questions about whether elongating the trading day would dilute participation further during off-peak times. Extending hours could exacerbate existing challenges, including reduced liquidity in quieter periods, heightened price volatility, and an environment perceived as increasingly speculative.

Institutional considerations add another layer of complexity, as firms may face pressure to maintain staffed trading desks continuously, potentially requiring new operational frameworks to ensure adequate coverage. Listed companies could also encounter difficulties in managing news releases and corporate communications without dedicated non-trading windows for undisturbed dissemination and internal discussions.

Trading pauses have historically allowed markets to absorb information, recalibrate participant positions, and mitigate excessive movements. Eliminating substantial downtime risks amplifying volatility, particularly if participation remains uneven across the expanded schedule. While proponents argue that greater access could enhance overall engagement over time, skeptics emphasize the need for robust safeguards to prevent unintended consequences in an already dynamic equity landscape. The outcome will depend on regulatory review and coordinated infrastructure upgrades across clearing and data dissemination systems.

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