Stocks at Risk of Tripping Circuit Breakers as Rout Resumes

  • ETF tracking the S&P 500 Index fell 6.9% in pre-market trading
  • Index futures pinned at limit-down levels during overnight
What Are Circuit Breakers and Do They Work?
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Volatility continues to roil U.S. equity markets, with premarket trading indicating the S&P 500 is likely to trigger a market-wide trading halt for the second time in three days.

An exchange-mandated circuit breaker will stop action for 15 minutes if the S&P 500 falls 7% from its Tuesday close after markets open at 9:30 a.m. in New York. The biggest exchange-traded fund that tracks the U.S. equity benchmark plunged 6.9% in early trading. Futures on the index sank 4.8% overnight before hitting levels that prevent further losses.