Nasdaq Inc. is accelerating a radical overhaul of U.S. equity markets, filing with the Securities and Exchange Commission to extend trading hours to 23 hours a day, five days a week, starting in the second half of 2026. The proposal, which would close the exchange only for a single hour from 8 p.m. to 9 p.m. ET daily, aims to capture surging global demand for round-the-clock access to U.S. stocks amid rising overnight activity driven by international investors and cryptocurrency-style trading expectations.

The move follows Nasdaq’s observation that clients are already trading U.S. equities overnight through alternative venues, with volumes spiking on news from Asia and Europe. ‘Nasdaq is planning to submit paperwork with the U.S. Securities and Exchange Commission on Monday to roll out round-the-clock trading of stocks, as it looks to capitalize on a global demand for U.S. equities,’ Reuters reported exclusively. The exchange’s plan includes a daytime session from 4 a.m. to 8 p.m. ET and a nighttime session from 9 p.m. to 4 a.m., creating a continuous trading week from Sunday night through Friday evening.

Roots in Global and Crypto Demand

Nasdaq’s push reflects broader shifts in investor behavior, where 24/7 crypto markets have normalized nonstop trading. The exchange, home to heavyweights like Nvidia, Apple, and Amazon, sees an opportunity to meet demands from overseas traders reacting to real-time global events. ‘Crypto’s 24/7 trading has influenced investor expectations, with Nasdaq acknowledging that many of its clients are already active overnight,’ CoinDesk noted. This comes as off-hours trading volumes have grown, fueled by platforms like Robinhood, which launched 24-hour weekday trading for select stocks and ETFs as far back as 2023.

Rival New York Stock Exchange has signaled similar ambitions, planning a 22-hour trading day, though without a firm timeline. ‘Nasdaq joins New York Stock Exchange in touting growing interest in trading U.S. stocks outside of traditional market hours,’ Financial Post reported. Yet, Nasdaq’s filing marks the most aggressive step yet toward formalizing near-continuous access on a major exchange.

Wall Street’s Sharp Backlash

Critics on Wall Street, particularly institutional traders, warn that extending hours could exacerbate market fragilities. Liquidity in U.S. stocks is already concentrated around the opening and closing bells, with off-peak periods prone to wider spreads and sharper swings. Wells Fargo analysts unleashed a blistering rebuke, calling the proposal ‘the worst thing in the world’ in a client note, arguing it would further ‘gamify’ stocks and turn equity trading into a casino-like endeavor. ‘Most of the complaints I hear about market structure are about poor volumes,’ the Wells Fargo trading desk memo stated, per Forbes.

Jay Woods, chief global strategist at Freedom Capital and a veteran NYSE floor broker, echoed these sentiments in a CNBC interview, stressing that companies and investors require ‘time to pause’ to digest information, convene meetings, and issue earnings releases. ‘Critics argue that formalizing nearly nonstop trading could worsen some of the very problems that plague the structure of equity markets today,’ CNBC detailed. Sparse volumes during extended hours could amplify volatility, reducing price discovery efficiency and heightening risks for retail and institutional participants alike.

Operational and Regulatory Hurdles

Implementing 23-hour trading demands massive infrastructure upgrades. Nasdaq plans a one-hour daily maintenance window to handle system resets, data processing, and risk management recalibrations. The SEC must now review the filing, weighing benefits of enhanced accessibility against potential systemic risks. A startup exchange, 24X National Exchange, recently secured SEC approval for similar 23-hour operations, but as a niche player with limited volume, it poses less threat to core market dynamics.

Posts on X highlight mixed sentiment: some traders celebrate the ‘degen mode’ unlock for nonstop action, while others decry risks of amplified swings in low-liquidity overnight sessions. ‘Nasdaq’s near 24-hour trading plan sparks Wall Street backlash,’ TheStreet reported, capturing the divide. Robinhood’s existing night trading, now emulated by Schwab via dark pools, has accustomed retail users to extended access but with caveats on execution quality.

Implications for Market Structure

For industry insiders, the proposal raises profound questions about liquidity fragmentation. Current extended-hours trading occurs via electronic communication networks and dark pools, where transparency and depth lag core sessions. Nasdaq’s plan could consolidate activity onto a lit exchange, potentially improving oversight but straining broker-dealers’ staffing and technology. ‘The stock exchange asked regulators to let it stay open 23 hours on weekdays,’ Morning Brew observed, noting concerns over sparser volumes leading to volatile, less efficient markets.

Institutional heavyweights like pension funds and mutual funds, which dominate daytime volume, may opt out of overnight trading, leaving sessions to high-frequency firms and retail speculators. This bifurcation could widen bid-ask spreads and magnify news-driven dislocations. Finance professionals remain divided, with some viewing it as a boon for global integration. ‘Nasdaq wants to enable trading on the exchange for nearly 24 hours a day during the week. Finance pros are mixed on the idea,’ Business Insider found in its survey.

Strategic Plays and Competitive Pressures

Nasdaq’s timing aligns with intensifying competition. NYSE’s 22-hour blueprint looms, while crypto exchanges like Coinbase—listed on Nasdaq—boast true 24/7 operations. Brokerages such as Robinhood have conditioned users to anytime trading, reporting robust uptake. ‘It might be time to buy Red Bull stock, because Nasdaq said this week that it asked regulators to let it move to 23-hour trading on weekdays,’ Morning Brew quipped, underscoring the stamina test ahead.

If approved, the shift could reshape revenue models, boosting exchange fees from higher activity but inviting scrutiny over market quality. Regulators will scrutinize safeguards against flash crashes in thin hours, mandating robust circuit breakers and surveillance. As Wall Street digests this, the debate pits innovation against stability, with Nasdaq betting big on a sleepless future for stocks.