NYSE Applies Rule 48 To Assist Tuesday Market Opening
Things are serious. The NYSE Applies Rule 48 To Assist Tuesday Market Opening.
Rule 48 is typically only applied when a trading session that is expected to be especially volatile.
NYSE invoked Rule 48 on multiple occasions during the financial crisis from 2008 to late 2011.
A number of U.S. blue chip firms, including pharma firm Pfizer, consumer goods giant P&G and chemical titan DuPont, have reported poor earnings or future guidance over the last 24 hours. When you throw in an unexpectedly poor durable goods report for December ad markets on edge with news about the Greek elections and worsening fighting in Ukraine,
it looks like today’s trading is setting up to be a rout in the stock markets.
Invoking Rule 48 is an implicit recognition of the situation, and an effort by the management of the NYSE to try and stay ahead of the downdraft.
What they don't tell you is the Plunge Protection Team, ie. the govt. buys stocks to prop up the mkt.--until they don't.