With stocks looking set to open sharply lower, investors will be watching for more market circuit breakers that can halt trading.
Michael Nagle | Xinhua News Agency | Getty Imagesglobal markets plungedJust as they did on Monday, futures on the S&P 500 triggered a halt following a 5% decline in pre-market trading. Futures on the Dow and the Nasdaq-100 also hit this limitation. At last count, futures were just above that threshold and so they were trading once again.In non-U.S. trading hours — that is before the 9:30 a.m. ET open of regular trading — stock futures are halted if they hit a downside limits of 5%.
Level 2: If the S&P 500 declines 13%, trading will again pause for 15 minutes if the drop occurs on or before 3:25 p.m. ET. There will be no halt if the drop happens after that.The prior circuit breaker system was revamped after it failed to prevent the May 2010 flash crash. The current set of breakers were put into effect in February 2013.in its worst day since 2008.
This comes as the Dow Jones Industrial Average hit bear market territory on Wednesday which means the market is down 20% from its recent highs.
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