Pre-Market Trading

Trading that occurs before the regular U.S. stock market session, typically from 4:00 AM to 9:30 AM Eastern Time. Pre-market sessions feature lower liquidity and wider spreads, but they allow traders to react to overnight earnings reports, economic data releases, and overseas market developments. Prices established in pre-market can set the tone for the regular session, and gap-up or gap-down openings often originate from pre-market activity.