7%, 13%, 20% drops will trigger halts in S&P trading
If the Russell 2000 futures hit a circuit breaker and halt before the cash session (before the regular stock market opens), here’s what typically happens:
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Futures Trading Halts Only
The halt applies only to the futures market (like the Russell e-mini). The cash session (stock market) still opens as scheduled unless broader circuit breakers are triggered after open. -
Signals Market Sentiment
A pre-market futures halt often signals intense selling pressure, which could lead to a volatile or delayed open depending on how things develop by the opening bell. -
No automatic cash halt
The cash market doesn’t halt just because futures do. The S&P 500 circuit breakers kick in only after the market opens and based on real-time index drops from the prior day’s close. -
Implications
If futures stay limit-down until open, market makers and brokers prepare for massive volatility, often with wider bid-ask spreads, restricted trading, or margin calls.