From Decrypt · By Jose Antonio Lanz
In brief
The S&P 500 plunged as much as 3.8% Thursday, raising concerns about emergency trading halts just one day after Trump celebrated Wall Street's record highs.
A further decline to 7,150.41 points would trigger the first market-wide circuit breaker, temporarily halting US stock trading for 15 minutes.
AI and semiconductor stocks led the selloff as investors reassessed the implications of Democratic midterm victories for the technology sector
President Donald Trump's celebration of Wall Street's highs aged rather poorly. Less than 24 hours after boasting about Americans' retirement accounts going "through the roof," the S&P 500 plunged as much as 3.8% Thursday, bringing emergency trading halts into the conversation.
The selloff prompted traders to monitor the market's circuit-breaker thresholds, which can temporarily shut down trading across U.S. stock exchanges when losses become too severe. The S&P 500 would need to fall another 3.2 percentage points from its decline to trigger the first emergency halt.
The timing is particularly awkward for Trump, who has repeatedly pointed to stock market performance as evidence of his administration's economic success.
PredictEconomySPY Lows in November
70036%YesNo72065%YesNo73084%YesNo710-%YesNo740-%YesNo+2 more outcomes+1 more outcomesNEW$0.00 volumeCloses: Dec 1, 2026, 04:59 UTCCloses: Dec 1, 2026, 04:59 UTC"Stock Market just hit another Record High—91 Days in just a short period of time—Less than two years. Your 401(k)s are through the roof," Trump wrote Wednesday on his Truth Social account. He closed the message with "Record Setting All! President DONALD J. TRUMP."
Wall Street had rallied Wednesday following the Democratic Party's sweeping midterm election victories. The S&P 500 gained 1.6%, its strongest daily performance in three months, while the Dow Jones Industrial Average jumped more than 1,500 points to 53.361 points.
Thursday's losses erase that rally in a single session, with technology stocks taking the biggest beating.
How close is wall street to a circuit breaker?
The U.S. stock market has three emergency thresholds designed to slow panic selling. These mechanisms, known as circuit breakers, automatically suspend trading when the S&P 500 falls by a specified percentage from its previous closing price.
The first threshold is a 7% decline, corresponding to an S&P 500 level of 7,150.41 points for Thursday's session. Reaching that level before 3:25 p.m. ET would trigger a 15-minute halt across US equity markets.
The circuit breaker level is located in the following chart’s blue line
A 13% decline, or 6,689.09 points, would trigger another 15-minute suspension. The most severe threshold comes at 20%, or 6,150.89 points, which would shut down trading for the remainder of the day.