Comrades!
The US stock market has instantly triggered the circuit breaker mechanism, danger is imminent!
The circuit breaker mechanism in the US stock market is based on the decline of the S&P 500 index, with the first and second level circuit breakers triggered only once per trading day, even if there is a rebound during the day and it falls again to 7% or 13%, the circuit breaker will not trigger again.
1. First Level Circuit Breaker (7%)
When the S&P 500 index falls by 7% compared to the previous trading day's closing price, the first level circuit breaker is triggered, and trading is suspended for 15 minutes.
2. Second Level Circuit Breaker (13%)
If the index continues to fall to 13%, the second level circuit breaker is triggered, and trading is suspended again for 15 minutes.
3. Third Level Circuit Breaker (20%)
If the decline expands to 20%, the third level circuit breaker is triggered, and all remaining trading time for the day is stopped.