The S&P 500 index dropped by 3.8% on Thursday, reversing gains from the previous session. Technology stocks experienced the most significant decline, with the Nasdaq Composite falling nearly 5% by 11 a.m. ET. Shares of Nvidia dropped more than 6%, while the semiconductor index saw a decrease of nearly 11%.
Market participants are monitoring emergency circuit-breaker thresholds designed to halt trading during severe selloffs. A 7% decline to 7,150.41 points would trigger a 15-minute suspension if reached before 3:25 p.m. ET. Further thresholds are set at 13% and 20% drops, corresponding to 6,689.09 and 6,150.89 points respectively.
The downturn impacted the cryptocurrency market, with Bitcoin falling below $76 000. Approximately $428 million in leveraged long positions were liquidated within one hour. Investors are currently evaluating the implications of recent election results, inflation data, and upcoming Federal Reserve policy decisions.
