Nasdaq moves to near 24-hour trading. Some say that’s a bad idea

Nasdaq’s Potential Move to Around-the-Clock Trading Sparks Controversy

The Nasdaq MarketSite in New York may soon see a significant change as Nasdaq moves closer to implementing around-the-clock stock trading. This shift, which is expected to launch in the second half of 2026 pending approval from the Securities and Exchange Commission, has sparked a debate among financial experts and market participants.

Under the proposed plan, Nasdaq would extend its trading hours to 23 hours each weekday, with a “day session” running from 4 a.m. to 8 p.m. Eastern time and a “night session” from 9 p.m. to 4 a.m. the following morning. This move aims to provide greater flexibility for traders and investors, allowing them to react to global market news at any time.

However, critics have raised concerns about the potential drawbacks of nearly nonstop trading. Some argue that this could exacerbate existing issues in the equity markets, such as thin liquidity, sharp price swings, and a trading environment that is becoming increasingly gamified.

“This is literally the worst thing in the world,” remarked the Wells Fargo trading desk in a note to clients. “I cannot think of an action that single-handedly gamifies the stock market even more than it has already become. This is the epitome of making trading even more like gambling.”

Jay Woods, chief market strategist at Freedom Capital Markets, expressed worries about the impact on listed companies. He noted that companies need time to release news events and hold meetings without constantly moving markets, and extending trading hours could disrupt this balance.

While Nasdaq’s move towards around-the-clock trading is not unprecedented, with retail-focused brokers like Robinhood already offering extended trading hours, some experts question the necessity of further elongating the trading day. Wells Fargo pointed out that the majority of liquidity already clusters around the market open and close, making the idea of stretching trading hours counterproductive.

Despite the potential benefits of extended trading hours, skeptics wonder whether firms will be able to adequately staff trading desks around the clock. Woods raised concerns about the need for a whole new ecosystem of traders and institutions to participate in trading throughout the night.

In conclusion, while Nasdaq’s proposal for around-the-clock trading may offer new opportunities for traders and investors, it also raises important questions about the impact on market structure, liquidity, and the overall stability of the financial markets. Only time will tell whether this move will be a game-changer or a source of new challenges for the industry.