What is a market-wide trading halt?

A market-wide trading halt, also known as a circuit breaker, is a temporary pause in trading across all U.S. markets during periods of extreme market volatility.

How it works:

• Trading halts are triggered by large declines in the S&P 500 Index
• The goal is to slow down trading and allow markets to stabilize

Circuit Breaker Levels:

• Level 1: 7% decline → 15-minute halt
• Level 2: 13% decline → 15-minute halt
• Level 3: 20% decline → Trading stops for the rest of the day

Important:

• Level 1 and Level 2 halts apply during regular market hours (9:30 AM – 3:25 PM ET)
• Level 3 can occur at any time and will close the market for the day
• When trading resumes, exchanges conduct reopening auctions to help reestablish prices

Learn more:

• https://www.nyse.com/markets/nyse/trading-info/market-wide-circuit-breakers
• https://www.nasdaqtrader.com/trader.aspx?id=MarketCircuitBreakers