Stock Market Trading Halted by Circuit Breaker for First Time Since 1997
- 4 years ago
Stock Market Trading Halted by Circuit
Breaker for First Time Since 1997 The circuit breaker mechanism
was triggered early in Monday's trading
after the S&P 500 plunged seven percent
shortly after opening. Global economies continues to be shaken
by the effects of the COVID-19 outbreak. For 15 minutes,
the entire stock market
was shut down. The market recovered enough
and remained relatively stable for the
rest of the trading day, preventing
another circuit breaker shut down. Had the market continued to
tumble reaching a 13 percent decline,
the mechanism would have been re-triggered. A 20 percent decline
would trigger a third halt in trading. The mechanism was
designed to give traders a moment to
breathe and reassess their options. It was introduced after Black Monday in 1987,
when the market crashed by 20 percent. The only other time it
was used was in Oct. of 1997. On Monday, the S&P 500
ended the day of trading down 7.6 percent.
Breaker for First Time Since 1997 The circuit breaker mechanism
was triggered early in Monday's trading
after the S&P 500 plunged seven percent
shortly after opening. Global economies continues to be shaken
by the effects of the COVID-19 outbreak. For 15 minutes,
the entire stock market
was shut down. The market recovered enough
and remained relatively stable for the
rest of the trading day, preventing
another circuit breaker shut down. Had the market continued to
tumble reaching a 13 percent decline,
the mechanism would have been re-triggered. A 20 percent decline
would trigger a third halt in trading. The mechanism was
designed to give traders a moment to
breathe and reassess their options. It was introduced after Black Monday in 1987,
when the market crashed by 20 percent. The only other time it
was used was in Oct. of 1997. On Monday, the S&P 500
ended the day of trading down 7.6 percent.