Due to corona virus being unpredictable and threatening to many people, the market reacted to it with unpredictability with large drops which triggered a market wide circuit break 4 times just in March. Due to the breaks, they paused the market for 15 to see if it would help the market.
During the market wide circuit breaks, S&P 500 trading triggered level 1 circuits during March 9th, 12th,16th, and later on the 18th. The markets stopped due to it dropping 7%.
Circuit breaks is a current mandate 15 minute pause in trading on all the U.S stock exchanges if S&P 500 index falls more than 7% before 3:25 p.m. New York time. They are set up to help calm markets by stopping trade if it grows more and more volatile. The first two breaks are to halt trading for 15 minutes and level 3 is to suspend trading for the rest of the day.
S&P 500 and the Dow both have seem drops more frequently due to the global pandemic of Corona virus. Corona has given uncertainty globally that the largest drops for Dow have been in March.
Will the stock market be able to rebound from the global pandemic?
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