On March 12 (Thursday), only 5 minutes after the opening of the US stock market, the S & P 500 index's decline expanded to 7%, triggering the second fuse this week, and the US stocks were suspended for 15 minutes. This is also the third fuse in the history of US stocks. The Dow fell 1691.31 points to 21856.91 before the fuse, and the Nasdaq fell 7.03% to 7739.25.

Before the opening, the three major US stock index futures continued to plummet. S & P 500 index futures, Dow Jones 30 index futures, and Nasdaq 100 index futures all fell more than 5%, which has once again triggered a blowout.

On the opening of March 12, the Dow Jones index fell 1732.30 points, or 7.35%, to 21820.89 points; the Nasdaq index fell 539.00 points, or 6.78%, to 7413.04 points; the S & P 500 index opened down 183.70 points, or 6.70% At 2557.65. After the opening, the three major stock indexes continued to fall, eventually triggering a circuit breaker and suspension of trading.

U.S. stocks have resumed trading, but the Dow and S & P 500 have fallen further. As of press time, the Dow Jones Index fell 8.45%; the Nasdaq Index fell 6.91%; the S & P 500 Index fell 7.39%.

On the evening of the 11th local time, US President Trump delivered a national television speech. He explained the government's specific measures to deal with the new crown epidemic, including restricting European travel to the United States and boosting the economy.

It is reported that Trump asked the US SME Administration to provide economic loans to the affected states and territories to provide funds and liquidity for SMEs; and will use emergency authority to delay the tax period of individuals and businesses.

However, according to foreign media reports, it is difficult for investors to believe that these measures can reverse the global economy, because there is growing concern that the number of infections in many countries will increase rapidly like a snowball. A preliminary foreign exchange strategist at IG Securities in Tokyo said, "The initial reaction in the financial markets shows that even after Trump's speech, investors still believe they need to hedge their risks."

Earlier, on March 9 (Monday), the US stock market also suffered a sharp drop in the opening. The S & P 500 index once fell 7%, triggering the first layer of fuse mechanism, and suspended trading for 15 minutes. This is 23 years after the first real meltdown in the history of U.S. stocks. On October 27, 1997, the Dow Jones Industrial Index plummeted 7.18%, and the first meltdown occurred.

In addition, as the global stock market continued to plummet this week, not only U.S. stocks melted down, the Brazilian stock index tumbled 12% on the 12th, triggering a third blowout this week; the Toronto Toronto Stock Exchange stock index fell 9.17%, which also triggered the primary market meltdown. Suspension of stock trading.

The fusing mechanism, also known as the automatic suspension mechanism, refers to the suspension of trading measures adopted by the exchange to control risks when the volatility of the stock index reaches the specified fusing point.

The fusing mechanism adopted in foreign exchanges generally has two forms, namely "melt and break" and "melt and continuous"; the former refers to the suspension of trading for a period of time after the price reaches the fuse point, and the latter refers to the price After reaching the fuse point, the sales declarations continued to be aggregated within the fuse price range for the subsequent period.

Data Map: New York Stock Exchange.

On October 19, 1987, the largest crash in the history of the New York stock market broke out in the United States. The Dow Jones Industrial Index fell 22.6% in one day. Due to the lack of a fuse mechanism and limits on the rise and fall, many millionaires overnight became Poor, this day is also known as "Black Monday" by the US financial community.

On October 19, 1988, the US Commodity Futures Trading Commission and the Securities and Exchange Commission approved the circuit breaker mechanisms of the New York Stock Exchange and the Chicago Mercantile Exchange.

What are the rules for the fuse mechanism during US trading hours? During the US trading hours, the fusing mechanism can be divided into three levels.

(1) Primary market fusing means that the market has fallen by 7%.

(2) Secondary market fusing means that the market has fallen by 13%.

(3) Tertiary market fusing means that the market has fallen by 20%.

If the primary or secondary market is triggered, and the time is between 9: 30-15: 25 (inclusive) Eastern Time, all stocks in the entire market are suspended for 15 minutes; after 15:25 Eastern Time, no suspension In addition, if the trading day is half-day trading, the time cut-off point is 12:25. Any trading session throughout the day, if the tertiary market fuse is triggered, the entire market will stop trading until the next trading day opens.

Editor: Cheng Chunyu Xie Yiguan