The S&P 500 circuit cut on the tariffs of customs tariffs. What does that mean

When stock prices and stock future decrease quickly in one session, the stock exchanges implement a trading to allow a moment of cold heads of the masters and avoid the market accidents that we have seen in the past in Wall Street.

Such moves usually occur during times of extremist market fluctuations, such as March 2020 When I sent Covid-19 World Markets. This time, the increasing global trade tensions raised by the high global definitions are implemented by the president Donald Trump They put tremendous pressure on the stocks, with sales operations continuation on monday.

During the regular hours from 9:30 am to 4 pm East time, trading in stocks may be stopped at the market level if it decreases in S & P 500 Run “circuit breaker”. These happen when the measurement index decreases by a certain amount within the day, leading to exchange of stock exchanges to stop all trading for a short period. All main stock exchanges are adhered to this trading.

There are three levels of circuit breaker:

• Level 1: S & P 500 is 7 % Intraday. If this happens before 3:25 pm East time, trading is stopped for 15 minutes. If this happens after that time, trading continues unless the category is stumbled from level 3.
• Level 2: S&P 500 13 % decreases inside the day. If this happens before 3:25 pm East time, trading stops for 15 minutes. If this happens after that time, trading continues unless Breker is run out of level 3.
• Level 3: S & P 500 % drowns inside the day. At this stage, the stock exchange hangs trading on the remaining period of the day.

The standard closed Friday’s session at 5,074.08. Below are the sills that the S&P 500 need to reach during the Monday session, different circuit breakers are operated:

• Level 1: 4,718.89
• Level 2: 4,414.45
• Level 3: 4,059.26

In non-American trading hours-between 6 pm East time and 9:30 am the next day-if S & P Futures It decreased by 7 %, then trading is stopped until traders are ready to purchase the contract at the “minimum” level.

Rusell 2000 Futures, which tracks the small clouds standard, briefly reached that threshold overnight, and decreased by 7 % before the bounce.

Wall Street starts from a terrible session. On Friday, the S&P 500 decreased by nearly 6 %, its worst day since March 16, 2020 – when 11.98 % drowned. The Dow Jones industrial average decreased by 5.5 %, the largest decrease for one day since June 11, 2020. NASDAC fell by 5.8 % on Friday and ended today in the bear market, a decrease of more than 20 % of its high record in December.

The sale continued on Monday, as the S&P 500 was 4.5 % and the entry of the bear market, a decrease of more than 20 % of the record in February.

Correction: Dow Jones Industrial Malce 5.5 % decreased, which is the largest decrease for one day since June 11, 2020. The previous version has offended the percentage.

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