If you’re a Malaysian retail investor interested in diversifying beyond Bursa Malaysia, the US stock market is one of the most accessible and rewarding places to start. This guide walks you through the essentials: how the market works, what you can trade, and the key dates that move prices.
What Is the US Stock Market?
The American stock market is the securities market in the United States—and it’s the largest in the world. It’s known for large trading volume, high liquidity, high transparency, and longer trading hours compared to most other markets.
The three main indices that track overall market performance are the Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite. These move the conversation when people talk about “how the US market did today.”
Why Invest in US Stocks?
1. High-Quality Stocks
The US market is home to top global companies across all industries—think Apple, Tesla, Microsoft, and thousands of others. These are businesses with proven track records and deep market penetration.
2. A Wide Range of Investment Products
You’re not limited to shares. You can also trade ETFs, bonds, and mutual funds, giving you flexibility to match your risk appetite and investment timeline.
3. Longer Trading Hours
The US market offers up to 16 hours of trading across pre-market, mid-day, and post-market sessions. This is much longer than Bursa Malaysia, giving you more flexibility.
4. Lower Barrier to Entry
You can buy as little as 1 share per trade and perform unlimited transactions within a day. This is perfect for starting small or testing out stock ideas.
Remisier tip: Start with fractional shares and blue-chip stocks if you’re new to US investing. They’re less volatile and easier to understand than micro-cap or penny stocks.
The Three Major US Stock Exchanges
1. New York Stock Exchange (NYSE)
The NYSE is the oldest, largest, and most well-known securities exchange in the United States, with a history of more than 300 years. It lists established companies from the financial, conventional, and retail industries. When people think “stock market,” they’re often picturing the NYSE.
2. NASDAQ Stock Market
Known as Nasdaq, this is an electronic exchange with the second largest market capitalization in the world. Its trading volume has even surpassed the NYSE at times. Most companies here are technology companies—if you want exposure to tech, Nasdaq is where most of it trades.
3. American Stock Exchange (AMEX)
AMEX is unique: it’s the only exchange that can trade stocks, options, and derivatives simultaneously. Most listed companies here are small and medium-sized enterprises, and ETF trading is comparatively active on this platform.
The Three Major US Stock Indices
Dow Jones Industrial Average (DJIA)
The oldest stock index, the Dow is made up of just 30 large American companies, including Microsoft and Coca-Cola. Because it only has 30 stocks, it moves based on the biggest, most established firms.
NASDAQ Composite Index
This index includes all shares listed on the Nasdaq Stock Exchange, mainly from emerging high-tech industries like internet and biotechnology. It’s the key indicator for technology stocks—if you’re tracking tech, watch the Nasdaq.
S&P 500
Standard & Poor’s selects 500 US companies by market capitalization and includes them in this index. The S&P 500 is well-diversified by sector, making it a solid proxy for overall US market health.
US Exchange-Traded Funds (ETFs)
US ETFs come in many types and can be categorized by country, market capitalization, or sector. By market cap, they split into three groups:
- Large-cap ETFs (e.g., VOO, IVV, SPY—all tracking the S&P 500)
- Small-and-medium-cap ETFs
- Total-market ETFs
ETFs are bought and sold just like ordinary stocks, with one lot as the unit of sale. The processing fees and transaction levies are the same as for regular stocks, making them a simple way to own a basket of companies in one trade.
Circuit Breakers: How the Market Protects Itself
The US stock market has circuit breakers—automatic trading halts triggered when volatility hits certain levels. These reduce transactional risk during panic selling or rapid gains.
There are three levels:
| Level | Trading Halt Time |
| Level 1 | A 7% decline will cause the market to be suspended for 15 minutes |
| Level 2 | A 13% decline will cause the market to be suspended for 15 minutes |
| Level 3 | A 20% slump will cause the market to be immediately closed |
There are also individual stock circuit breakers for single companies experiencing extreme moves.
Key Dates That Move the US Market
US Earnings Season
Most listed companies release their quarterly and annual financial statements in January, April, July, and October. These months are when big price moves often happen, so mark your calendar.
Quadruple Witching Day
The quadruple witching day is the third Friday of each quarter (March, June, September, and December). This is the settlement day for stock index futures, stock index options, single stock futures, and single stock options. Usually, there will be large fluctuations in commodity prices on that day, so expect higher volatility.
Remisier tip: If you’re new to US stocks, avoid placing large orders right on earnings day or quadruple witching day. Wait for the dust to settle and prices to stabilize.
Key Takeaways
- The US stock market is the world’s largest by trading volume and offers high liquidity, transparency, and long trading hours.
- You can start with as little as 1 share and trade unlimited times per day, making it accessible for Malaysian retail investors.
- There are three major exchanges (NYSE, Nasdaq, AMEX) and three key indices (Dow, S&P 500, Nasdaq) to track market performance.
- ETFs let you own a diversified basket of stocks with fees identical to regular stock trades.
- Circuit breakers automatically halt trading at 7%, 13%, and 20% market declines to protect against extreme volatility.
- Mark your calendar for earnings season (Jan, Apr, Jul, Oct) and quadruple witching days (third Friday of Mar, Jun, Sep, Dec) when volatility typically spikes.
Frequently Asked Questions
What is the minimum investment to start trading US stocks?
You can buy as little as 1 share per trade, with no minimum account size typically required through a broker like M+ Global. This means you could own Apple or Microsoft with just a few hundred ringgit.
What are the main differences between NYSE, Nasdaq, and AMEX?
The NYSE is the oldest and largest with established companies; Nasdaq specializes in tech stocks; AMEX is unique for allowing simultaneous trading of stocks, options, and derivatives, with strong ETF activity. Each has a different character, but all three are legitimate, regulated exchanges.
Is the S&P 500 index the best way to invest in US stocks?
The S&P 500 is well-diversified by sector and a solid foundation for any US portfolio, but it’s not the only option. The Dow is more conservative (30 stocks), and Nasdaq is more tech-heavy. Your choice depends on your risk appetite and views on different industries.
What happens during a circuit breaker halt?
When the market falls 7% or 13%, trading halts for 15 minutes to let panic subside. If it falls 20%, the market closes immediately for the day. This protects investors from making emotional decisions in extreme volatility.
When should I avoid trading US stocks?
Avoid placing large orders during earnings season (January, April, July, October) and on quadruple witching days (third Friday of Mar, Jun, Sep, Dec) when volatility is historically higher. Wait for calmer conditions if you’re risk-averse.
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Source: based on the official M+ Global Help Centre (Malacca Securities Sdn Bhd). Fees, hours and procedures are set by Malacca Securities and the exchanges and may change — check the M+ Global app or ask your remisier for the latest.
Disclaimer: This guide is for general information only and is not financial advice.
