What is a circuit breaker? Here’s when trading is halted during intense sell-offs

From Yahoo Finance: 2025-04-10 15:09:00

Global markets have been disrupted by President Trump’s widespread tariffs, causing the Dow Jones to drop over 4,000 points. Circuit breakers are in place to prevent chaotic losses during intense declines, triggered by specific benchmarks set by the SEC.

If the S&P 500 falls by 7%, trading is paused for 15 minutes under Level 1. Level 2 is triggered by a 13% fall, while Level 3 stops trading altogether at a 20% decline. Taiwan’s semiconductor stocks triggered circuit breakers, with steps taken to stabilize the market amid tariffs.

Japan paused trading for Nikkei 225 futures after an 8% rise or fall. The U.S. avoided trading pauses despite close calls with a 6% drop in the S&P 500. Markets worldwide are reacting to Trump’s tariffs, leading to trading halts in various countries.

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