A drastic decline in global oil demand, due in part to Coronavirus fears, led to significant losses in global markets overnight, and prompted a temporary suspension of trading in the U.S. after stocks opened Monday morning.
The DOW Jones Industrial Average opened trading down 1,800 from Friday’s close.
So-called ‘circuit breakers’ are now built into U.S. markets. A significant percentage drop in the indices will automatically trigger a temporary suspension of trading.
A decline of at least 7% of the S&P 500 will trigger a 15 minute halt across U.S. markets.
This is the first time trading has been suspended since 2016.