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The shutdown, which began at 11:32 a.m. EST, followed “earlier reports of technical difficulties.”
Update: According to Bloomberg, the NYSE will reopen Wednesday at 3:10 p.m. EST. Thomas Farley, president of the NYSE, has said that the technical issues that affected the exchange were “not the result of a cyber breach.”
Intercontinental Exchange’s (NYSE:ICE) NYSE Group said Wednesday that it’s temporarily suspended trading in all of the securities on its exchanges. Notably, NYSE Group includes the New York Stock Exchange (NYSE).
According to Reuters, the shutdown, which began at 11:32 a.m. EST, followed “earlier reports of technical difficulties.”
“We’re currently experiencing a technical issue that we’re working to resolve as quickly as possible,” a spokesperson for the NYSE told ABCNews.com. “We will be providing further updates as soon as we can, and are doing our utmost to produce a swift resolution, communicate thoroughly and transparently, and ensure a timely and orderly market re-open.”
Such issues are not typical in US markets, and reports are rolling in of traders on the NYSE floor standing around looking at blank terminals.
That said, USA Today points out that even with the NYSE down, “trading in stocks listed on the New York Stock Exchange can continue.” Many companies are listed on other exchanges in addition to the NYSE, and there are dedicated electronic networks that allow traders to buy and sell stocks listed on the NYSE even when the exchange is down.
Putting the halt in further context, The Wall Street Journal, whose website went down just after the suspension, states that it followed “a broad selloff in shares that was spurred by a deepening decline in China’s stock market.” The Shanghai Composite index is now down 5.9 percent, at 3,507.19 points, while Hong Kong’s Hang Seng index (INDEXHANGSENG:HSI) is down 5.8 percent.
While that situation is playing out across the ocean from the US, the news outlet notes that US investors are nevertheless concerned. That’s because the downturn could “drag down the pace of global growth, which would weigh on demand for goods and services broadly.” Furthermore, “it could depress earnings for U.S. companies that are closely linked to Chinese growth” — for example, industrial metals and materials companies.
As mentioned, the NYSE has said it will be providing updates on the situation as soon as possible. Investors will be no doubt be keenly watching for news.
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.