The U.S. stock market is about to get a lot less sleepy. Nasdaq Inc. (NDAQ), the second-largest stock exchange in the world with $41.23 trillion in total market capitalization, is preparing to file paperwork with the Securities and Exchange Commission on Monday to launch 23-hour trading for U.S. stocks and ETFs, according to a Reuters report.

How the New Schedule Would Work

Under Nasdaq's proposal, trading hours would more than double from the current 16 hours to 23 hours per weekday. The new format splits the day into two main sessions: a day session running from 4 a.m. to 8 p.m. Eastern Time, followed by a one-hour break, then a night session from 9 p.m. until 4 a.m. the next calendar day.

The trading week would kick off Sunday at 9 p.m. and wrap up Friday at 8 p.m. Any night trades executed between 9 p.m. and midnight would count toward the following calendar day.

Right now, extended-hours trading happens across three separate sessions totaling 16 hours. The new schedule consolidates everything into two longer windows, which should make life easier for international traders who want access to American markets without staying up at odd hours.

According to Nasdaq President Tal Cohen, the exchange plans to roll out full round-the-clock, five-day-a-week trading in the second half of 2026. The exchange did not immediately respond to requests for comment.

Why Now? Follow the Money

The driving force here is simple: global investors can't get enough of U.S. stocks. Foreign holdings of American equities hit $17 trillion last year, according to Nasdaq's own data. That's a massive pool of capital spread across different time zones, and those investors want to trade when it's convenient for them, not just when Wall Street happens to be awake.

Nasdaq isn't operating in a vacuum here. The SEC approved the first 24-hour stock exchange over a year ago, granting that distinction to 24 Exchange, which is backed by Steve Cohen's Point72 Ventures. That move opened the floodgates.

Broker-dealers have already jumped on the trend. Robinhood Markets Inc. (HOOD) and Charles Schwab Corp. (SCHW) both offer 24-hour trading capabilities for U.S. stocks and ETFs. TD Ameritrade was actually the first broker to roll out this feature years ago, proving there's genuine retail appetite for after-hours action.

Meanwhile, Nasdaq's direct competitors aren't sitting still. CBOE Global Markets, Inc. (CBOE) and the New York Stock Exchange's parent company, Intercontinental Exchange Inc. (ICE), have both recently filed their own proposals with the SEC for extended trading hours. Nobody wants to be left behind when the market decides sleep is optional.

The shift toward always-on trading reflects a broader transformation in how markets operate. When a significant chunk of your investor base lives in Asia or Europe, limiting trading to traditional U.S. business hours starts to look like leaving money on the table. Nasdaq's move is less about innovation and more about catching up with where the demand already is.