Trading on the exchange automatically stopped after the S&P 500 index fell below 7%. Last week, the exchange stopped three times.
The New York Stock Exchange suspended trading on Monday, March 16, after opening due to a fall in key indices.
So, the Dow Jones index in the first minutes of trading lost 2250.46 points (9.71%) and fell to the level of 20953.16 points. The fall of the S&P 500 index, which includes the 500 largest companies in the US market, amounted to 220.55 points (8.14%), to 2490.47 points. The Nasdaq Electronic Exchange Index fell 482.15 points (6.12%) to 7392.73.
Bidding was suspended automatically for 15 minutes and then resumed. This was caused by the fall of the S&P 500 below 7%. Trading on the New York Stock Exchange may be suspended again for 15 minutes вЂ” if this index drops by 13 percent or more, and by the end of the day вЂ” if it decreases by more than 20%.
According to The Wall Street Journal, such a drop is due to the decision of the Federal Reserve to reduce the rate to 0-0.25% in the fight against risks arising from the spread of coronavirus. In addition, the Fed announced that it is moving to a policy of so-called quantitative easing. The system will purchase additional bonds totaling $ 700 billion, of which $500 billion will come from US Treasury bonds.
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Recall that last week, global markets experienced the largest collapse in recent years due to falling oil prices and concerns about COVID-19. The New York Stock Exchange suspended trading three times a week вЂ” for the first time since 2008.