On March 18, the us stock market suspended trading for 15 minutes due to the intraday fall of more than 7% in the s&p 500 index, marking the fifth circuit breaker in us history and the fourth in 10 days. Before that, on March 9, March 12, March 16, the us stock market has had three crash circuit breaker, the three days of the dow Jones industrial average decline of 7.8%, 10.0%, 12.9%, each time a severe fall.
Now, some people are trying to figure out how to reduce the number of circuit breakers. The Chicago mercantile exchange (CME) 17 foreign, said the U.S. stock market may adjust the fusing mechanism, circuit breakers in the us stock market adjusted to 7% and 13% of falling limit, request the ETF market obey the rules of the same fuse, narrow the gap between ETF market and other market prices, the surge of relief at the start of the trading day trading. On May 31, 2012, the New York stock exchange modified the circuit breaker mechanism of the index. The second is to modify the circuit breaker threshold to 7%, 13% and 20%.
The consensus is that stocks will hit bottom only when there is more fiscal stimulus and the new coronavirus epidemic stops worsening. Among them, epidemic improvement is the core element. According to credit suisse, the market will hit bottom only after the daily rate of new coronavirus hits a peak.