U.S. stock markets are nearing the activation of circuit breakers, which are mechanisms designed to temporarily halt trading during significant market declines. NASDAQ futures are approaching a limit-down level of 17,265.25, representing a 6.9% drop from the previous Friday's close. This situation marks the first potential circuit breaker activation since the COVID selloff in March 2020. The circuit breaker system consists of three levels, triggered by a 7% drop (Level 1), 13% drop (Level 2), and 20% drop (Level 3) in the S&P 500 Index within a single trading day. As of now, the market's performance indicates a heightened risk of panic-selling, prompting discussions around the effectiveness of these regulatory measures.