This Day In Market History: NYSE Launches After-Hours Trading

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened?

On this day 28 years ago, the NYSE began after-hours stock trading for the first time.

Where The Market Was

The Dow closed at 2,965. The S&P 500 traded at around 377.63. Today, the Dow is trading at 24,815 and the S&P 500 is trading at 2,752.

What Else Was Going On In The World?

In 1991, the number of computers connected to the early internet passed the 1 million mark. Jeffrey Dahmer was arrested after the remains of 11 men and boys were found in his apartment in Milwaukee. A gallon of gasoline cost $1.12.

Extended Trading Hours

Since 1985, the regular trading hours for the NYSE and the Nasdaq have been 9:30 a.m. to 4 p.m. ET. The NYSE opened up to after-hours trading in June 1991, allowing institutional investors to trade until 5:15 p.m. for the first time.

As electronic communication networks became more popular over the years, many retail traders gained access to after-hours trading as well. Hours were extended by the major markets, and today traders can make pre-market trades from 4 a.m. to 9:30 a.m. and after-hours trades from 4 p.m. to 8 p.m.

Traders who take advantage of after-hours trading can be the first to react to major catalysts such as earnings reports, but the after hours session can be extremely volatile and dangerous due to the relative lack of liquidity in the market.

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Trading After-Hours Can Be A Dangerous Game