Key Takeaways

  • The New York Stock Exchange (NYSE) and Nasdaq will be fully closed on Thursday, December 25, 2025, in observance of Christmas Day.
  • No regular trading, pre-market, or after-hours sessions will occur on this federal holiday.
  • Trading will resume on Friday, December 26, 2025, at normal market hours (9:30 AM to 4:00 PM ET).
  • Christmas week often sees lower trading volumes and potential "Santa Claus Rally" effects in the surrounding sessions.

Official Holiday Schedule for U.S. Exchanges in 2025

As a federally recognized holiday in the United States, Christmas Day, December 25, 2025, is one of the fixed annual market closures. Both the NYSE and Nasdaq adhere to a published holiday schedule, and Christmas is consistently included. The markets will be completely shut down, with no electronic trading or settlement operations. This closure is absolute, meaning all equities, options, and bond markets tied to these exchanges are also closed. The closure is mandated by exchange rules and aligns with the Securities Industry and Financial Markets Association (SIFMA) recommendations for the bond market.

Detailed Trading Hours for Christmas Week 2025

Understanding the full weekly schedule is crucial for positioning. Here is the expected timeline for the week of December 22, 2025:

  • Monday, December 22 & Tuesday, December 23: Regular trading hours (9:30 AM - 4:00 PM ET). Pre-market (4:00 AM - 9:30 AM ET) and after-hours (4:00 PM - 8:00 PM ET) sessions operate as normal.
  • Wednesday, December 24 (Christmas Eve): This is a key date to watch. While not a federal holiday, the NYSE and Nasdaq typically close early at 1:00 PM ET. There are no after-hours trading sessions on early-close days. Bond markets also close early.
  • Thursday, December 25 (Christmas Day): MARKETS ARE CLOSED. No trading occurs.
  • Friday, December 26: Markets reopen for a full trading day under normal hours.

What This Means for Traders and Investors

A market holiday is not just a day off; it's a strategic factor that requires planning. The closure impacts cash flow, settlement dates (T+2), and option expirations. Orders placed for execution on December 25 will not be filled until the market reopens on the 26th, potentially at significantly different prices. For traders, this enforced pause creates a unique dynamic in the surrounding trading days.

Actionable Insights for Navigating the Holiday Closure

1. Focus on Liquidity and Volume: The trading sessions immediately before and after a major holiday often experience thinning liquidity. This can lead to exaggerated price moves on lower volume. Traders should consider using limit orders over market orders to avoid unfavorable fills due to wider bid-ask spreads.

2. Monitor the "Santa Claus Rally": This historical tendency for stocks to rise in the last five trading days of the year and the first two of the new year will be in effect. With the holiday closure, this period in 2025 encompasses December 22, 23, 24, 26, 29, 30, and January 2, 2026. While not guaranteed, seasonal traders watch this pattern closely.

3. Plan for Year-End Portfolio Management: December 25 falls near the year-end tax-loss harvesting and portfolio rebalancing deadline. Investors must complete any trades for the 2025 tax year by the market close on December 31. The Christmas closure reduces the number of available trading days to execute these strategies, so advance planning is essential.

4. Global Market Considerations: While U.S. markets are closed, some international exchanges (e.g., in parts of Asia and the Middle East) may be open. Significant geopolitical or economic news breaking on Christmas Day could trigger volatility in overseas markets, which would then gap U.S. markets upon their Friday open. Traders holding positions over the holiday should be aware of this event risk.

5. Manage Options and Derivatives: Check the specific expiration schedule for weekly options. The closure will affect the timing of assignment and expiration processes. Ensure you understand how your broker handles obligations over the non-trading day.

Historical Context and Seasonal Trends

Christmas week has historically been a bullish period for stocks. According to data from the Stock Trader's Almanac, December is often one of the strongest months of the year, with a tendency for gains to cluster around the holiday period. The combination of holiday optimism, institutional window-dressing, and lower selling pressure can contribute to upward momentum. However, traders should note that in years where a bearish trend is firmly established, these seasonal patterns can fail. Analyzing the broader market trend heading into late December 2025 will be more important than relying solely on historical precedent.

Conclusion: Plan for the Pause and Watch the Window

The confirmed closure of the NYSE and Nasdaq on Christmas Day, December 25, 2025, is a fixed event in the trading calendar. For the active trader, the strategic importance lies not on the quiet holiday itself, but in the unique conditions of the truncated trading week that surrounds it. Reduced liquidity, the potential for seasonal rallies, and compressed deadlines for year-end strategies create both opportunity and risk. The most prepared traders will adjust their order types, manage their risk exposure ahead of the closure, and develop a clear plan for re-entering the market on December 26. By respecting the holiday schedule and understanding its market implications, you can navigate this period not as a mere interruption, but as a defined phase in your annual trading rhythm.