CNBC – Plunging stock market futures hit ‘limit down’ — Here’s what that means
* Contracts on the S&P 500 dropped 5%, reaching a “limit down” band made by the CME futures exchange to prevent further losses.
* No prices can trade below 5%, only at higher prices than “limit down.”
* The Dow Jones Industrial Average futures plunged more than 1,000 points, also triggering the limit down level.
SummaryCentral banks fired all their weapons to stop markets from declining, but U.S. stock futures are locked limit down as we write. The central bank “put” no longer works. If risk markets make new lows, regulators and government officials may have no choice but to close the financial markets to prevent chaos and lasting damage.