Aaron Parnas reports -
In a stunning and chaotic start to the trading week, U.S. markets have entered a steep and sudden free fall this morning, sending shockwaves across Wall Street and raising concerns that trading may be halted if losses accelerate further.
Just minutes after the opening bell, the S&P 500 dropped 3.36%, the Dow Jones Industrial Average shed 3.11%, and the NASDAQ cratered by 3.90%. Market sentiment is in a tailspin, and analysts are already bracing for a potential triggering of the circuit breaker mechanism — a rare event designed to curb panic selling.
Circuit breakers, established after the 1987 market crash, are triggered when the S&P 500 falls 7% or more from the previous day's close. If that happens, trading is paused for 15 minutes to give the market a chance to stabilize. If the bleeding continues, additional thresholds at 13% and 20% could trigger further halts or even a market-wide shutdown for the rest of the day.
If the pace of decline continues at this rate, we may see trading halted within the next several hours. Financial institutions and analysts across the board are scrambling to assess exposure and risk. Social media is also flooded with speculation and fear, further amplifying the sense of crisis.