Update (0952ET): Cash indices have reopened after their 15-min circuit-breaker halt and are extending losses. The Dow is down 2000 points!
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As we noted pre-open, S&P futures were locked limit-down 5%, but as we noted SPY was trading down 7.5% in the pre-open...
and now that the cash S&P 500 has opened and tumbled 7%...
...it is now halted for 15mins as the first major circuit-breaker has kicked in. As a reminder:
If the S&P 500 declines 7%, (208 points), trading will pause for 15 min
If declines 13%, (386 pts) trading will again pause for 15 mins
If falls 20%, (594 pts) the markets would close for the day.
Additionally, Canadian stocks are down 7% at the open, the most since 2008; and Brazilian stocks are down 10% at the open, triggering their circuit breaker.
This has entirely erased all the Fed liquidity-add gains...
S&P is now unchanged since January 2018...
Buy and hold?