You're sitting there, coffee in hand, looking at your portfolio and wondering if today is a trading day. It is the second Monday in October. Some people call it Columbus Day; others call it Indigenous Peoples' Day. You see the mailman isn't coming, and the local bank branch has the lights off. Naturally, you assume the markets are dark too.
But here is the weird thing about American finance.
Is the US stock market open on Columbus Day? Yes. It absolutely is. While the federal government takes a breather and the bond market shuts its doors, the New York Stock Exchange (NYSE) and the Nasdaq keep the tickers running just like any other Monday. It’s one of those quirky "half-holidays" that catches retail investors off guard every single year.
The Great Divide: Stocks vs. Bonds
The confusion usually stems from the fact that Columbus Day is a federal holiday. Under 5 U.S.C. § 6103, it’s one of the ten legal public holidays in the United States. This means the Federal Reserve is closed. Because the Fed is closed, the bond market—governed largely by the recommendations of the Securities Industry and Financial Markets Association (SIFMA)—takes the day off.
Stocks are a different beast.
The NYSE and Nasdaq don't follow the federal government's lead on this one. They have their own schedule. If you want to buy 100 shares of Apple or dump your position in an index fund, you can do that from 9:30 AM to 4:00 PM ET. However, because the bond market is closed, the "vibe" of the day is often strange. You might notice that trading volume is a bit lower than usual. When there's no action in Treasury notes, some of the big institutional players just stay home.
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It creates this lopsided financial environment. You can trade equities, but you can't settle certain types of transactions that require the banking backbone to be fully operational. Basically, the plumbing of the financial system is half-clogged while the decorative fountain on top—the stock market—is still spraying water.
Why the Stock Market Stays Open
You might wonder why the exchange heads don't just take the day off and go golfing. It mostly comes down to money and global competition. Every day the market is closed is a day of lost transaction fees.
The NYSE and Nasdaq are private entities. They aren't government agencies. They decided a long time ago that they would only close for the "major" holidays: New Year’s Day, MLK Jr. Day, President's Day, Good Friday, Memorial Day, Juneteenth, July 4th, Labor Day, Thanksgiving, and Christmas.
Columbus Day and Veterans Day are the two "orphans." The government shuts down, but the stock market keeps grinding. Honestly, it’s a bit of a headache for back-office workers at brokerage firms. They have to staff the desks even though their banking counterparts are out of the office.
What Happens to Your Trades?
If you place a trade on Columbus Day, it still executes instantly. You’ll see the confirmation in your Schwab or Fidelity app. But remember the T+1 settlement rule that recently became the standard in 2024?
Usually, when you sell a stock, the cash settles the next business day. Because Columbus Day is a bank holiday, the settlement cycle can get funky. Since the banks are closed, that "day" for money moving purposes often doesn't count. If you sell a stock on the Friday before Columbus Day, you might expect your cash on Monday. Nope. You’ll likely wait until Tuesday because the banking system wasn't "open" to move the actual fiat currency.
- The NYSE is open.
- The Nasdaq is open.
- International markets (like the LSE or Nikkei) don't care about US federal holidays and stay open.
- Commercial banks are closed.
- The US Post Office is closed.
It is a fragmented reality. You can buy a fractional share of a tech giant on your phone, but you can’t go into a branch to dispute a charge on your debit card.
History of Market Closures
The history of when the market closes is actually pretty fascinating and surprisingly inconsistent. In the early 20th century, the NYSE used to close for all sorts of things. They’d close for heatwaves. They’d close for funerals of prominent bankers.
During the 1950s and 60s, the exchange was even open on Saturdays for a while. Eventually, they realized that the overhead wasn't worth the Saturday volume. Over time, the list of holidays was standardized to maximize "up-time" while still giving traders a break. Columbus Day was never deemed "important" enough by the exchange boards to warrant a full stop, unlike Christmas or Labor Day.
Even during the COVID-19 pandemic, when the floor of the NYSE actually closed, electronic trading never skipped a beat. This resilience shows that it takes a lot more than a federal holiday to stop the flow of capital.
The Impact on Volatility
Is it a good idea to trade on Columbus Day?
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Some traders love it; others hate it. Because the bond market is closed, there is a lack of "macro" direction. Usually, stock prices react to movements in the 10-year Treasury yield. If the 10-year isn't moving because the bond market is asleep, stocks can sometimes drift aimlessly.
Or, conversely, low liquidity can lead to "flash" movements. If a piece of news breaks and there aren't many people at their desks to provide liquidity, a relatively small sell order can push a stock price down further than it would on a high-volume Tuesday. It’s a bit like a ghost town that still has the lights on. You can walk around, but if you start a fight, there aren't many people there to break it up.
What About Other Markets?
If you are into crypto, this conversation is irrelevant. Bitcoin doesn't have a CEO, and it certainly doesn't recognize Christopher Columbus. Crypto markets are open 24/7/365.
If you trade commodities—like gold, oil, or wheat—those markets (CME Group) often have "abbreviated" hours. They might open in the morning and close early at 1:00 PM ET. You always have to check the specific exchange for the underlying asset.
The Confusion with Veterans Day
Veterans Day (November 11th) follows the exact same logic as Columbus Day. The stock market is open, the bond market is closed, and the mail doesn't run. It’s the "sequel" to the Columbus Day confusion. If you find yourself asking this question in October, you’ll probably be asking it again in November.
Actionable Steps for Investors
Don't let the holiday schedule trip up your strategy. If you're planning on moving money or executing a specific strategy around the second Monday of October, keep these points in mind:
Check your liquid cash. If you need to transfer money from your bank to your brokerage to cover a trade, do it by the Thursday before the holiday. Since banks are closed on Monday, a transfer initiated on Friday night might not hit your brokerage account until Tuesday or Wednesday.
Adjust your expectations for volume. If you are a day trader who relies on high-volume momentum, Columbus Day might be frustrating. The "big money" is often taking a long weekend.
Mind the settlement gap. Remember that while the trade happens "now," the money moves "later." If you are selling stocks to pay for a house closing or a major purchase on Tuesday, the bank holiday could delay your access to those funds.
Use limit orders. In low-volume environments, market orders are dangerous. A wide "bid-ask spread" can result in you paying a lot more (or receiving a lot less) than the last price you saw on the screen. Always use a limit order to control your entry and exit prices.
Verify international exposure. If you trade ADRs (American Depositary Receipts) of foreign companies, check if their home market is open. Just because the US market is open doesn't mean a specific foreign exchange isn't celebrating a local holiday you've never heard of.
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The stock market is a machine that rarely sleeps, but it does occasionally blink. Columbus Day is one of those times where the machine is humming, but the people who fix the gears are mostly at the beach. Trade accordingly.