You're standing in line to vote, checking your phone, and wondering if you should be checking your portfolio, too. It’s a fair question. In a country where practically everything stops for a major holiday, it feels like the New York Stock Exchange (NYSE) should probably take a breather while the nation decides its future. But here’s the short answer: Yes, markets are open on Election Day.
Whether it’s a high-stakes presidential race or a midterm battle, the bells at the NYSE and Nasdaq will ring at 9:30 a.m. sharp. Honestly, the U.S. is kind of an outlier here. Many other countries, like Japan or South Korea, actually close their markets or hold elections on weekends to avoid the overlap. We just keep the tickers running while the ballots drop.
The Weird History of Election Day Closures
Believe it or not, it wasn't always this way. If you were trading back in the mid-20th century, you’d actually get the day off. Up until 1980, the NYSE used to close for presidential elections. They basically figured that everyone—traders, brokers, clerks—needed the time to go vote without the distraction of a crashing ticker or a sudden rally.
Then things changed. By 1984, the decision was made to stay open. Why? Technology, mostly. As trading became more global and computerized, closing for a Tuesday in November started to look like a missed opportunity for volume. Plus, the "right to vote" argument lost its teeth as early voting and mail-in ballots became more common. Now, Election Day is just another Tuesday on Wall Street.
Are Markets Open on Election Day 2026?
Looking ahead to the next big one, the 2026 midterms fall on Tuesday, November 3. If you’re planning your trades around that date, mark your calendar for a standard session.
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- NYSE & Nasdaq: Open (9:30 a.m. – 4:00 p.m. ET)
- Bond Markets: Usually open, though SIFMA (the group that sets bond holiday recommendations) sometimes suggests shorter hours or light staffing.
- Banks: This is where it gets confusing. Some banks close because it's a state holiday in places like New York or Illinois, but the Federal Reserve stays open.
Basically, if you want to buy 100 shares of an index fund at noon while waiting for your "I Voted" sticker, nothing is stopping you.
How the Market Actually Behaves on Election Day
You might expect chaos, but the day of the election is often surprisingly quiet. It’s the "calm before the storm" vibe. Traders are humans, too; they’re often sitting on their hands, waiting for the first exit polls to leak.
Historically, the S&P 500 has a weirdly good track record on the actual day of the election. Data from IG and various analysts show that the S&P 500 has posted an average positive return of about 0.92% on election days since 1928. That’s a "hit rate" of 77%. People are optimistic. They think their candidate will win, or they’re just glad the constant TV ads are almost over.
The Post-Election Hangover
The real drama starts the day after. Once a winner is declared (or if the result is contested, like in 2000), the market tends to react sharply.
- The "Sobriety" Phase: That 0.92% gain on Tuesday often turns into a -0.71% drop on Wednesday.
- Sector Shifts: If a candidate with a heavy green-energy platform wins, oil stocks might dip while solar gains.
- Volatility Spikes: The VIX (the "Fear Gauge") usually climbs in the week leading up to the vote and stays twitchy until a concession speech is made.
What Most People Get Wrong About Politics and Portfolios
There is a massive myth that "The Market Loves Republicans" or "The Market Hates Democrats." The data doesn't really back that up.
Since 1926, the S&P 500 has returned an average of about 11% in election years. It doesn't seem to care much about the color of the tie in the Oval Office as much as it cares about certainty. What the market hates more than a specific policy is a "contested" election. Remember the "hanging chads" of 2000? The S&P 500 dropped nearly 8% in the month following that election while the courts sorted it out.
Actionable Steps for Election Day Trading
If you're planning to navigate the markets during the next election cycle, don't just wing it.
- Check the Bond Market: If you trade fixed income, double-check the SIFMA recommendations about 48 hours before. They might recommend an early close at 2:00 p.m. even if the stock market stays open until 4:00.
- Ignore the Exit Polls: Early exit polls are notoriously wrong. Trading based on a 2:00 p.m. rumor out of Florida is a great way to lose money by 8:00 p.m.
- Look at the VIX: If you want to see how "nervous" the pros are, keep an eye on volatility indexes. High volatility means wide spreads, which makes day trading more expensive.
- Automate Your Rebalancing: Instead of trying to time the "Trump Bump" or the "Biden Bounce," just stick to your long-term plan. History shows that the market's long-term trajectory is driven by earnings and interest rates, not ballot boxes.
The markets are open on Election Day because money never sleeps, even when the country is busy counting. Just remember that while the polls close at night, the global market impact is only just beginning when the sun comes up on Wednesday.
Focus on your long-term allocation. Check your stop-loss orders if you're worried about overnight gaps. Most importantly, go vote—the markets will still be there when you get back.