Stocks plunge, trigger a key market ‘circuit breaker’

Stocks plunged on Monday at the open, triggering a key market-wide “circuit breaker” designed to prevent the market from crashing due to concerns over the COVID-19 coronavirus pandemic.

stocks plunge trigger circuit breakerYun Li for CNBC:

The S&P 500 plunged about 8% right after the opening bell, tripping the level one circuit breaker that resulted in a trading halt for 15 minutes. The Dow Jones Industrial Average plummeted 2,250 points at the open. The market reopened at 9:46 a.m. ET.

Sell-off accelerated after the trading resumed with the Dow down 11.8%, or 2,733 points. The S&P 500 dropped 11%, and the Nasdaq Composite is down 11.7%. If the S&P 500 declines 13%, trading will again pause for 15 minutes if the drop occurs on or before 3:25 p.m. ET.

MacDailyNews Take: Volatility is to be expected. Plunging stocks triggering circuit breakers should not be a surprise. Those who remain clam have a higher probability of profiting than those who panic.

Be fearful when others are greedy. Be greedy when others are fearful. — Warren Buffett

The “circuit breaker” rules, which apply to normal trading hours only, are as follows:

• Level 1: If the S&P 500 drops 7%, trading will pause for 15 minutes.

• Level 2: If the S&P 500 declines 13%, trading will again pause for 15 minutes if the drop occurs on or before 3:25 p.m. ET. There will be no halt if the drop happens after that.

• Level 3: If the S&P 500 falls 20%, trading would halt for the remainder of the day.


  1. This is the perfect situation where savvy investors will buy stocks at depressed prices and wait it out on the long run for a healthy profit. No doubt Apple is doing a lot of buyback

    1. Only idiots and morons worry about or brag about or comment at all about Apple’s stock price in the short term. Hmmmm. Interesting you made a comment about Apple’s short term stock price. Let the backpeddling begin! No! No! I was just commenting about another comment! No! Really!

      Short term stock buying and selling is the gambling you like to talk about. Buying and holding long term isn’t gambling in the slightest and since there are no guarantees of anything in life ever if you want to call a buy and hold strategy gambling you’re calling all of life gambling including everything YOU do day to day.

  2. The market works in cycles and to think you’ll beat the cycle every time with merely holding long term is gambling, or at least ignoring the cycle (playing against the odds). If your timeline is flexible, maybe the long-term hold will work, because of market recovery. If your hoping to leave a job and, or too old to go back to work, sticking to the hold principle at a time like this will be/feel no different than losing a chunk in Las Vegas.

    1. “maybe the long-term hold will work”

      Uhhh, buy and hold long term has never not worked. If we’re in a situation where foundational type companies lose all of their value the price of those stocks will be the least of your worries. If that type of scenario comes to pass money won’t even matter anymore. In that sense everything is gambling. You can’t be 100 percent sure of anything. Ever. Still, as long as the world doesn’t spiral into the end times, buying and holding stock in companies that have good logical business models will always work long term.

  3. MDN advice is to remain “clam” and ignore the daily stock reports bleeding all over the floor, which MDN reprints without fail. Priceless!

    It is plainly obvious that the Fed, the administration, and all major industries are in pull blown panic mode now. Quick, blame somebody!

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