You’re staring at your trading screen, coffee in hand, wondering why the tickers aren't moving. Or maybe you're planning a massive swing trade for Monday and suddenly realize it’s a federal holiday. It happens to the best of us. Stock market Columbus Day schedules are honestly one of the most confusing quirks of the American financial calendar because, unlike the post office or your local bank, the stock market doesn't always play by the "federal holiday" rulebook.
Basically, the New York Stock Exchange (NYSE) and the Nasdaq stay open.
Wait, what?
Yeah. While your mail carrier is taking the day off and most government employees are sleeping in, the equity markets are usually humming along at full speed. It’s a weird disconnect. You’ve got the bond market closed—because that follows the Securities Industry and Financial Markets Association (SIFMA) recommendations—but the stock market stays live. This creates a strange trading environment where volume might feel a bit thin, but the buy and sell orders are still flying.
The Great Divide: Why Stocks Stay Open While Bonds Sleep
If you’ve ever wondered why the stock market Columbus Day policy feels so inconsistent, you have to look at how different exchanges operate. The NYSE and Nasdaq have a very specific list of nine holidays where they shut down completely. Columbus Day (or Indigenous Peoples' Day, as it is increasingly recognized) simply isn't on that list.
The bond market is a totally different animal. Since the bond market is heavily tied to the federal government and the banking system, it shuts down whenever the Federal Reserve takes a break. This creates a "split" market.
Think about it this way.
On Columbus Day, you can go out and buy 100 shares of Apple or Tesla without a hitch. However, if you're trying to settle a complex transaction that requires a wire transfer through a traditional bank, you might hit a wall because the banks are closed. It’s a bit like having a car with a full tank of gas but the garage door is stuck. The market is ready to go, but the plumbing of the financial system—the banks—is taking a nap.
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What This Means for Your Portfolio
Low volume is the name of the game. When a big chunk of the institutional world is out of the office, there are fewer "players" on the field. This can lead to some choppy price action.
Sometimes, because there isn't as much liquidity, a single large trade can move a stock more than it usually would on a Tuesday in mid-November. It’s not necessarily "dangerous," but it’s definitely something to keep an eye on if you're day trading. Most retail traders might not even notice the difference, but the pros know that "holiday volume" is a real phenomenon that can trap you if you aren't careful.
Historical Context and the Exchange Rules
The NYSE hasn't always been this way, but for decades now, they’ve stuck to a lean holiday schedule to keep the US competitive with global markets like London and Tokyo. They only close for the "big" ones: New Year's Day, Martin Luther King Jr. Day, Washington's Birthday (Presidents' Day), Good Friday, Memorial Day, Juneteenth, Independence Day, Labor Day, Thanksgiving, and Christmas.
Notice something? Columbus Day and Veterans Day are conspicuously absent.
- The 1950s and 60s: There was more parity back then between banks and markets.
- The Modern Era: Speed is everything. If the world is trading, the NYSE wants to be trading.
There's also the psychological factor. Traders are a restless bunch. Closing the market for a Monday holiday in October, right when the "fourth quarter push" is starting to heat up, just doesn't sit well with the big firms on Wall Street. They want those commission dollars.
Trading Strategies for a Split-Market Day
Since the stock market Columbus Day session is open but the bond market is closed, you get some weird technical anomalies. For example, Treasury yields won't move. Usually, equity traders watch the 10-year Treasury note like a hawk to see where interest rates are heading. On this specific holiday, that "North Star" is stationary.
It can feel like flying a plane with one of your instruments turned off.
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You should also be wary of "fake-outs." In a low-volume environment, a stock might break out of a resistance level, looking like it’s headed for the moon, only to collapse the next day when the full weight of the market returns. Honestly, if you don't have a high-conviction trade, it's often better to just sit on your hands and wait for Tuesday.
- Check your broker's support hours: Even though the exchange is open, some smaller brokerage firms might have limited phone support.
- Watch the spreads: Bid-ask spreads can widen when there are fewer market makers active.
- Don't expect big news: Most public companies won't drop major earnings reports or press releases on a federal holiday because they know half the press corps is off.
The Banking Lag
You've got to remember the settlement cycle. Even with the move to T+1 settlement in recent years, a holiday can still mess with your "funds available to withdraw" countdown. If you sell a stock on Friday, and Monday is Columbus Day, don't be surprised if that cash isn't hitting your bank account until mid-week. The banks aren't moving the money, even if the brokerage says the trade is "settled."
It’s an annoying reality of 21st-century finance still being tethered to 19th-century banking hours.
Common Misconceptions About Holiday Trading
A lot of people think that if the post office is closed, the market is closed. That’s the biggest myth.
Another one? That international markets follow our lead. They don't. The FTSE in London or the DAX in Germany couldn't care less about an American federal holiday in October. If there is a massive geopolitical event in Europe on that Monday, the US stock market will react to it in real-time, even if the bond traders are at a backyard BBQ.
This creates a bit of a vacuum.
Why Does the Bond Market Close Anyway?
The bond market is essentially the "debt" market. It relies heavily on the Federal Reserve’s payment systems (FedWire). Since the Fed is a government entity, it observes all federal holidays. Without the Fed’s clearing systems operating at full capacity, trading government debt becomes a logistical nightmare.
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The stock exchanges, being private entities, decided a long time ago that they’d rather make money than take a three-day weekend.
What to Expect in 2026 and Beyond
As we look at the calendar for 2026, Columbus Day falls on October 12. You can bet your bottom dollar the NYSE and Nasdaq will be open for business. However, keep an eye on the growing trend of "holiday drift." Some firms are starting to give their employees more "floating holidays," which means even if the market is open, your favorite analyst or fund manager might not be at their desk.
What does this mean for you?
Expect even thinner volume than in years past. Algorithms tend to dominate the price action on these days. When humans are away, the bots play. This can lead to "mean reversion" trading where stocks just oscillate in a tight range because there’s no "new money" coming in to push a trend.
Actionable Steps for Traders
If you're planning to trade during the stock market Columbus Day session, here is your checklist:
- Verify your orders: If you have limit orders sitting out there, remember they will be active. Don't get caught off guard by a random spike.
- Adjust your expectations: Don't expect "Godzilla" moves. It’s usually a "Bambi" kind of day.
- Check the futures: S&P 500 and Nasdaq futures will be trading, but they might have an early close. Always check the CME Group website for specific holiday hours for futures and options.
- Bank transfers: If you need money for a Tuesday trade, move it by Thursday or Friday of the week before.
The most important thing is to not let the "open" status of the market fool you into thinking it's a normal day. It’s a "half-strength" day. Treat it with the respect it deserves, or better yet, take the hint from the bond traders and take a break yourself. The market will still be there on Tuesday, likely with more liquidity and clearer signals.
Don't overcomplicate it. Stocks are on. Bonds are off. Banks are closed. If you can remember that trio, you're already ahead of 90% of the retail crowd scratching their heads on Monday morning.
Keep your position sizes small if you must trade, and always double-check your calendar against the official NYSE holiday list to avoid any expensive surprises.
Next Steps for You:
Check your brokerage's specific "Holiday Settlement" schedule. This is usually buried in the FAQ section of sites like Fidelity, Charles Schwab, or Robinhood. Knowing exactly when your "settled funds" will be available for withdrawal will save you a massive headache if you’re planning on using that cash for mid-week bills. Also, if you trade options, verify the expiration nuances for that week, as holiday Mondays can sometimes shift the "days to expiration" (theta) decay calculations in your trading software.