Why do people clap when the stock market closes?
The ritual of hearty applause at the closing bell of U.S. stock exchanges has endured since the late 1800s. The reasons vary, but the tradition is enjoyed by many on the trading floor.HistoryThe first official signal of the end of the trading day came about in the 1870s at the New York Stock Exchange (NYSE), where the striking of a Chinese gong announced the opening and closing of trading. The use of brass bells began in 1903.PurposeMuch like the end of concerts and theater, the stock market’s closing applause simply acknowledges a job well done by all at the exchange.Corporate PromotionA guest dignitary rings the opening and closing bells every trading day at the NYSE. This dignitary usually represents a company with a significant news announcement on that particular day, like an initial public offering or the launch of a new product.CelebrationSatisfaction and relief also fuels the enthusiastic clapping at 4 p.m. Eastern time, since the fast-paced trading is done for the day, profits
