How Is the Coronavirus Pandemic Affecting the Global Stock Market?


Stock Market Trading Stopped 4 Times!
It may be alarming to know that the S&P initiated a Level 1 market-spanning circuit breaker during the opening hours on three days of March. These were the 9th, the 12th and the 16th. The breaker was based on a big 7% drop from the previous period’s close. This fall nearly tripled on the 18th of March.


How do Circuit-Breakers Work?

The current guidelines on this format mandate that there should be a 15-minute pause when people are panic-buying. Circuit-breaker guidelines automatically initiate if there is a fall greater than 7% before 3:25 PM (New York Time). These breakers are there to calm the market down, and give investors time to think over their decisions. It therefore initiates when the market is becoming seemingly more volatile. There are several levels of breaks. The first two of these are initiated to halt market trading for 15 minutes. The third breaker when initiated suspends further trading for the rest of the day.

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