The US stock market is experiencing a sharp sell-off, with the S&P 500 falling at an alarming rate. This intensifying rout has raised concerns that it may trigger a circuit breaker, designed to protect investors from extreme market volatility.
Circuit breakers were introduced into the stock market to mitigate panic selling during times of crisis. They work by temporarily pausing trading on major stock indexes when they fall below certain thresholds. The goal is to prevent a sudden and drastic loss of investor confidence that can exacerbate market declines.
As the S&P 500 continues to slide, investors are watching closely to see if it will reach the level required to trigger a circuit breaker. If this happens, trading on major stock indexes would be halted until the market stabilizes.
The sell-off began in response to President Trump’s “reciprocal” tariffs, which were imposed by the US government on certain foreign goods. The S&P 500 has been falling for two days straight, with no signs of slowing down.
Source: https://www.marketwatch.com/story/could-tariffs-trigger-a-stock-market-circuit-breaker-heres-how-much-further-the-s-p-500-has-to-fall-b7742de1