March 9, 2020, marked the first U.S. stock-market circuit-breaker halt during the 2020 crash. The S&P 500 fell 7% shortly after the opening bell, activating the market’s Level 1 circuit breaker for 15 minutes.
The halt occurred as investors reacted to the rapid spread of COVID-19, the collapse of an oil-price arrangement, and a sudden deterioration in economic expectations. The Dow Jones Industrial Average fell more than 2,000 points, while global markets also suffered steep losses.
Circuit breakers are designed to interrupt trading during exceptionally fast declines, giving participants time to reassess prices and orders. The U.S. system was introduced after the 1987 crash and was later revised. Additional U.S. market-wide halts occurred on March 12 and March 16, 2020.