The Market Just Triggered a ‘Circuit Breaker’ That Keeps Stocks From Falling Through the Floor

The S&P 500 fell more than 7% Monday, triggering circuit breakers that prevent a further plunge. From a report: The index hit “limit down” shortly after the open, halting trading below that level for 15 minutes. The market was set to resume trading at 9:49 am ET. In addition to the S&P, the most all-encompassing large-cap stock index, the Dow Jones Industrial Average fell 7.3% while the Nasdaq, which is concentrated in technology names, slid 6.9%. According to the New York Stock Exchange, a market trading halt may occur at “three circuit breaker thresholds” on the S&P 500 due to large declines and volatility. Under “circuit breaker” rules, stocks will resume trading 15 minutes after the halt. The halt on Monday morning was the first since the rules were implemented after the financial crisis. If there’s a subsequent drop of 14% from the last trading close, there will be another 15-minute trading halt. If there’s a 20% drop at any point, that would halt trading for the rest of the day.