Excessive price swings and generalized uncertainty are common traits of a volatile market. It’s hard to predict what will move the stock market.
Your investment portfolio may appear to soar or plunge at these times due to rumors that the president may issue an executive order, the Fed may change interest rates, or the government may sanction an industry bailout.
Similar to a timeout, a market-wide trading halt is intended to reduce panic selling during risky times. All trading on US equity, options, and futures exchanges halts when these exchanges issue halts.
Rawsalerts posted on X, “Robinhood has just halted 24-hour trading due to huge market volatility. They have suspended all 24-hour trades until further notice.”
Be aware that there might only be one Level 1 and Level 2 halt every trading day. This means that trading would only resume if the S&P 500 fell by 13% or more, triggering a 15-minute delay if it dropped by 7%. Similarly, trade would stop if the S&P 500 fell by 13% (which would also result in a 15-minute halt). However, trading would end if the decline reached 20%.
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