Only an incompetent, ignorant buffoon would claim that tariffs and trade wars which are tanking the global economy are a ‘beautiful thing to behold,’ but that’s our (p)resident, in a nutshell…an incompetent, ignorant buffoon.
For a third day of trading, US markets opened up in the toilet while Asian markets plunged overnight, with stock indexes in Singapore, Australia, Japan, South Korea and India all suffering losses. European markets tanked four percent.
On his shithole, ‘Truth’ Social, T”he Fascist Felon “touted the fact that crude oil prices are down. Obviously, the incompetent, ignorant buffoon does not understand that oil prices have fallen because of “fears of reduced demand in the increasingly likely event of a recession.” In TFF’s world, this is a bigly win.
On Monday, economists at US banking giant Goldman Sachs predicted a 45% chance of a recession in the US if Trump does not negotiate deals on the tariffs.
That came after JP Morgan, another US bank, said it saw a 60% chance of recession in the country.
How much do stocks have to drop before trading is halted? The details on market ‘circuit breakers’
When stock prices and stock futures fall rapidly in a single session, exchanges implement halts in trading to allow a moment for cooler heads to prevail and avoid market crashes we’ve seen in the past on Wall Street.
Such moves usually take place during times of extreme market volatility, such as March 2020 — when the Covid-19 pandemic sent global markets tumbling. This time, surging global trade tensions sparked by surprisingly high universal tariffs implemented by President Donald Trump are putting massive pressure on equities with selling pressure increasing going into Monday. Futures tied to the S&P 500 were tumbling overnight.
There are three circuit breaker levels:
- Level 1: The S&P 500 falls 7% intraday. If this occurs before 3:25 p.m. ET, trading is halted for 15 minutes. If it happens after that time, trading continues unless a level 3 breaker is tripped up.
- Level 2: The S&P 500 drops 13% intraday. If this occurs before 3:25 p.m. ET, trading stops for 15 minutes. If it happens after that time, trading continues unless a level 3 breaker is triggered.
- Level 3: The S&P 500 plunges 20% intraday. At this point, the Exchange suspends trading for the remainder of the day.
The benchmark closed Friday’s session at 5,074.08. Here are the thresholds the S&P 500 needs to reach during Monday’s session the different circuit breakers to be triggered:
- Level 1: 4,718.89
- Level 2: 4,414.45
- Level 3: 4,059.26
