Trading halted on Wall Street after stocks plunge 7% at open
Coronavirus-induced stock sell-offs triggered another market-wide trading halt today for the second time this week and only the third time in history.
Markets dropped within minutes of the opening and the S&P 500 hit a 7 percent decline at 9:34 a.m., triggering a mandatory 15-minute break under SEC rules.It was the first of three possible breaks in trading today, known as market-wide circuit breakers, which regulators have put in place to curb massive sell-offs when investors panic.
Pre-market trading had already shown signs of strain after President Donald Trump's address Wednesday. After Trump announced a travel cutoff between the U.S. and Europe, stock futures plunged. By the time markets opened at 9:30, futures for all three major indices — the S&P 500, the Dow Jones Industrial Average, and the Nasdaq composite index had dropped 5 percent, hitting the maximum allowable sell-off price before the market opens.
On Monday, a break occurred within minutes of the market opening as coronavirus-related market fears collided with upheaval in the oil markets related to changes in Saudi Arabia's oil production.Today's circuit breaker rules, went into effect in 2013, have three different thresholds to stop trading: if S&P 500 index drops by 7, 13, or 20 percent. If the market drops 7 or 13 percent before 3:25 p.m., trading will stop for 15 minutes. After 3:25 p.m.
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