S&P 500 Circuit Breakers and Individual Stock Halts Set for April 7

Stock market circuit breakers are mechanisms designed to temporarily halt trading during significant market declines, triggered by intraday percentage drops in the S&P 500 index. For April 7, 2025, the thresholds are set at Level 1 (4,718.89, 7% drop), Level 2 (4,414.45, 13% drop), and Level 3 (4,059.26, 20% drop). Level 1 and Level 2 pauses last 15 minutes if triggered before 3:25 PM ET, while a Level 3 decline halts trading for the day. These circuit breakers also apply to individual stocks, which are paused if their prices swing too far, too fast, typically between 5–10%. The 'magnet effect,' a phenomenon where prices accelerate toward circuit breaker thresholds, has been observed in some cases. Circuit breakers were first implemented after the 1987 Black Monday crash and have been triggered only a handful of times, including four instances during the COVID-19 pandemic in March 2020. Research highlights that poorly designed circuit breakers, such as China's failed 2016 implementation, can amplify volatility and destabilize prices.