Christmas Stock Market Holiday Facts

What does Christmas Day, definitively a religious holiday, have to do with the stock market? As Christmas Day is an official federal holiday in the United States, it's important to know that the stock market closes in observation of all federal holidays.

Christmas is one of the most widely celebrated holidays across the world, marked by festive decorations, family gatherings, gift exchanges, and a spirit of goodwill. In the United States, Christmas Day is also a federal holiday, and its impact extends beyond personal celebrations to affect financial markets. Many investors and traders wonder how Christmas affects the stock market and related financial sectors. This article explores the history of Christmas, the status of stock and bond markets during Christmas and Christmas Eve, and offers ideas on how to spend the holiday for those who don’t observe it religiously.

What is the History Behind Christmas as a Stock Market Holiday?

Christmas Day, celebrated on December 25th, commemorates the birth of Jesus Christ and has been a public holiday in the U.S. since the late 19th century. The New York Stock Exchange (NYSE), the heart of American equities trading, began observing Christmas as a holiday in the early 20th century as part of a broader set of federal and market holidays.

The exact date when Christmas became an official stock market holiday is not precisely documented, but by the 1930s, the NYSE had established December 25th as a day of closure, aligning with federal and cultural norms. This tradition continues today, with the stock market recognizing Christmas as a key holiday during the winter season.

Is the Stock Market Open or Closed on the Christmas Holiday?

On Christmas Day (December 25th), the U.S. stock market is officially closed. This applies to both the NYSE and the Nasdaq, meaning no trading occurs on this day. It is one of the few holidays when the markets are fully closed, giving investors and traders a break from market activity.

Regarding Christmas Eve (December 24th), the market’s schedule can vary depending on the day of the week Christmas falls on. Generally, the stock market operates on a shortened trading day on Christmas Eve, typically closing early at 1:00 PM Eastern Time. However, if Christmas Eve falls on a weekend, the stock market is usually closed the preceding Friday or the following Monday, depending on the calendar year.

In 2025, the U.S. stock markets, including the New York Stock Exchange (NYSE) and Nasdaq, will observe specific trading hours around the Christmas holiday:

Christmas Eve – Wednesday, December 24, 2025

• Early Close: Both the NYSE and Nasdaq will close early at 1:00 PM Eastern Time (ET).

• Reason: This early closure is in observance of Christmas Eve, allowing market participants to prepare for the holiday.

Christmas Day – Thursday, December 25, 2025

• Market Closed: Both the NYSE and Nasdaq will be completely closed for the entire day.

• Reason: Christmas Day is a recognized federal holiday in the United States.

The markets will reopen for a normal day of trading at 9:30 AM ET on Friday, December 26, 2025.

It's important for traders and investors to plan accordingly, as these closures can impact trading volumes and liquidity. Additionally, after the holiday, markets may experience increased activity as participants resume trading.

What about Bonds? Are Bond Markets Open or Closed on Christmas or Christmas Eve Holidays?

The bond market, including the trading of U.S. Treasury securities, follows a similar holiday schedule as the stock market. On Christmas Day, the bond market is closed, with no trading activity taking place.

On Christmas Eve, bond markets often close early, mirroring the stock market’s shortened session. However, exact hours can vary by institution and year, so it’s wise to check specific market calendars for confirmation during the holiday season.

In 2025, the U.S. bond market will observe the following schedule around the Christmasholiday:

• Christmas Eve (Wednesday, December 24, 2025): The bond market will close early at 2:00 PM Eastern Time. This early closure is in observance of Christmas Eve.

• Christmas Day (Thursday, December 25, 2025): The bond market will be closed for the entire day, as Christmas Day is a recognized federal holiday.

If You Get The Day Off, But You Do Not Religiously Observe Christmas, What Might You Do?

Since Christmas is a federal holiday, many businesses, banks, and government offices are closed, including the stock and bond markets. For individuals who do not celebrate Christmas as a religious holiday, this day can still be an opportunity to relax, reflect, or engage in alternative activities.

Here are a few ideas to make the most of the holiday:

• Volunteer: Many community organizations offer volunteering opportunities during the holiday season, providing a chance to give back.

• Spend time outdoors: Use the day to enjoy nature, go for a walk, hike, or visit a local park.

• Connect with loved ones: Even if you don’t observe Christmas, spending time with friends or family can be meaningful.

• Learn or relax: Take advantage of the break to read, catch up on a hobby, or practice mindfulness and self-care.

• Explore cultural events: Many cities host holiday markets, concerts, or light displays open to the public.

Christmas Day can be a peaceful pause in the busy end-of-year calendar, regardless of your personal beliefs.

Conclusion

Christmas holds a special place both culturally and on the financial markets’ calendar. The stock and bond markets close on Christmas Day, with early closures on Christmas Eve, allowing traders a much-needed break during a historically festive time. While rooted in religious tradition, Christmas as a federal holiday also offers a moment of rest and opportunity for everyone, regardless of religious observance. Knowing these market schedules and making thoughtful use of the holiday can help investors stay informed and balanced during this busy season.