Why stock market is down today and will a Nasdaq circuit breaker be placed | Explained
The US stock market had a choppy first hour on Thursday with Dow Jones falling as much as 2,150 points, the S&P 500 and the Nasdaq down between 6.5% to 7%.
Updated on: Apr 11, 2025, 08:00:56 IST
By Yash Nitish Bajaj | Edited by Yash Nitish Bajaj
The US stock market had a choppy first hour on Thursday with Dow Jones falling as much as 2,150 points, the S&P 500 and the Nasdaq down between 6.5% to 7%. This comes after the Bureau of Labor Statistics released the consumer price inflation report, stating that inflation eased more than expected in March.
The US stock market was down on Thursday (Bloomberg)
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As almost all major stocks plummeted, several investors wondered if a circuit breaker would be placed on the Nasdaq. A circuit breaker is triggered when the S&P 500 index declines by a certain percentage within a single trading session. The three stages are: Level 1 (7% decline), Level 2 (13% decline), and Level 3 (20% decline). Trading halts for 15 minutes if the drop occurs before 3:25 PM ET for Levels 1 and 2, and for the remainder of the day if it's a Level 3 drop at any time.
As of 9:56 AM PDT (12:56 PM ET), we are still early in the trading session, which runs from 9:30 AM ET to 4:00 PM ET. The Dow Jones is down 5.15%, while the S&P 500 has dropped 5.75%. The Nasdaq Composite slid 1,131.9 points, or 6.61%.
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As of 9:56 AM PDT (12:56 PM ET), we are still early in the trading session, which runs from 9:30 AM ET to 4:00 PM ET. The Dow Jones is down 5.15%, while the S&P 500 has dropped 5.75%. The Nasdaq Composite slid 1,131.9 points, or 6.61%.
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A Level 1 circuit breaker is triggered if the S&P 500 falls 7% from the prior day's close. If the index does have a 7% decline, trading could be halted for 15 minutes.
Will a circuit breaker be triggered?
Yes, it is likely, that the S&P 500 will reach or exceed a 7% decline. For Levels 2 (13%) and 3 (20%), the current decline (up to 7%) is still far from those thresholds.
When was the last time a circuit breaker was triggered?
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The last time a market-wide circuit breaker was triggered was on March 18, 2020. This occurred during the intense volatility sparked by the onset of the COVID-19 pandemic. The S&P 500 dropped more than 7% shortly after the market opened, activating a Level 1 circuit breaker, which halted trading for 15 minutes.
Why stock market is down today
After huge gains following President Trump's tariff pause announcement on Wednesday, stock indexes plummeted on Thursday. This might be a reaction to the White House's clarification about tariffs on China, which are at 145%. Retail inflation eased in March but that may not do much for the Fed to cut rates in May.
Yash Bajaj is a Chief Content Producer with a strong foundation in US coverage, digital strategy, and audience-focused storytelling. As part of the US Desk at Hindustan Times, he covers a wide range of topics - from American politics to sports (NFL, NBA, derbies, MLB and more). Before joining Hindustan Times, Yash served as Deputy News Editor at Times Now, where he oversaw international coverage and led a team of six. In this role, he significantly expanded global traffic through strategic planning, SEO-driven content execution, and meticulous trend tracking across platforms. He is experienced in managing high-pressure breaking-news shifts, coordinating live coverage, and building newsroom systems that improve speed, accuracy, and reach. Prior to Times Now, Yash held a position at Opoyi, where he headed the Sports and US news team. He developed broad editorial strategies, guided reporters across multiple beats, and played a key role in recruiting and training new talent. His responsibilities also extended to social media management and experimenting with innovative content formats. A passionate NFL fan, Yash is a die-hard supporter of the Cincinnati Bengals and has followed Joe Burrow closely since his college days at LSU. Whether breaking down top players' latest performance, analyzing team performances, or tracking roster moves, he brings the same dedication and sharp storytelling to his sports coverage as he does to American politics and breaking news. When he’s not writing, Yash can often be found watching games or debating the latest NFL storylines with fellow fans. Yash holds a Bachelor of Mass Media (Journalism) from HR College, Mumbai University. His interests extend well beyond the newsroom: he is an enthusiastic explorer of AI tools, a movie buff with an ever-growing watchlist, and someone who enjoys unraveling conspiracy theories for fun.
Stay updated with US News covering politics, crime, weather, local events, and sports highlights. Get the latest on Donald Trump and American politics along with Horoscope 2026.
Stay updated with US News covering politics, crime, weather, local events, and sports highlights. Get the latest on Donald Trump and American politics along with Horoscope 2026.
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