Publication

March 9, 2020Client Alert

Why the NYSE Just Stopped (and Resumed) Trading

If you're paying attention to the markets this morning, you will have noticed the latest market 'hiccup' to hit the New York Stock Exchange (NYSE).
 
The New York Stock Exchange has a series of "circuit breakers" in place to calm investors' nerves when they're panicked.
 
One of these 'circuit breakers' was tripped Monday morning shortly after trading began; the S&P 500 fell by more than 7%, halting trading for 15 minutes.
 
The next 'circuit breaker' would be if the market falls by 13% - this would pause trading for another 15 minutes.
 
If the market plunged 20%, everyone would go home: Trading would stop for the day.
 
Stocks resumed trading at 9:49 am ET.
  • The S&P was down 7.2% upon the reopen.
  • The Dow fell 7.9%, or 2030 points.
  • The Nasdaq Composite dropped 7.2%.
 
In the political world of the coronavirus outbreak, many notable individuals are now self-quarantining including Texas Senator Ted Cruz and Portugal's President Marcelo Rebelo de Sousa.
 
The MBS Trade Team will be monitoring any developments.
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