Major Brokerages Struggle with Service Disruptions During Market Downturn

  • Robinhood maintains 24-hour trading despite social media rumors of halts.
  • Nasdaq falls over 6% as global markets face severe declines.
  • Solana surpasses Ethereum in trading volume for the first time.

Recent events have shown that global stock markets are on a free-fall trajectory following increased concerns about recession and significant market volatility. This has majorly put brokerage firms such as Robinhood under intense challenges in their operations, especially since it was recently revealed, , contrary to the reports, that the popular trading platform had temporarily halted operations of its 24-hour trading service, according to rumours that swirled on social media. 

However, the firm keeps its 24-hour service policy. This announcement follows conflicting reports regarding the social media front and an official statement where one of its spokespeople states that its 24/7 trading schedule will remain unaffected.

Robinhood’s 24-hour market service, launched in May 2023, enables customers to invest on their own schedule, operating from Sunday to Friday at 12:00 am UTC.

Brokerage Service Problems

The market turmoil is not only within Robinhood. Other major brokerage firms have reported service disruptions. This broader market downturn has the Dow falling over 1,000 points and the S&P 500 down more than 4.2% early in the trading session.

The tech-heavy Nasdaq Composite also saw a significant fall, decreasing by over 6%. This turmoil mirrors significant losses globally, with Japan and Taiwan experiencing their worst declines in decades. The cryptocurrency market also experienced a sharp contraction, with CoinShares noting a $528 million outflow from crypto investments. 

This shift occurred as Solana recorded a higher trading volume than Ethereum for the first time, indicating a volatile but active engagement within the crypto trading space. 

Global Markets in Turmoil

Major stock indices have melted on a larger scale, with the Nikkei and Nasdaq being hit the most. Japan’s Nikkei saw its biggest drop since Black Monday in 1987; the Nasdaq and other U.S. indices also lost much value. 

The sharp reversal came after abysmal job figures were released from the U.S., heightening fears of a looming recession. Market watchers are viewing this with great interest, and some have been suggesting that the U.S. Federal Reserve would perhaps be forced to conduct emergency rate cuts even after having refrained from doing so recently.

Chicago Fed President Austan Goolsbee expressed the Fed’s commitment to maintaining financial stability and addressing further economic downturns. 

Response by Financial Analysts

Financial analysts have reacted to the general crisis and observed that the abrupt market meltdown was a reaction to the negative economic signals. The sell-off in Japan and the whirl of losses in U.S. stocks reflect a deeper undercurrent of worry related to global economic insecurity. 

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The post Major Brokerages Struggle with Service Disruptions During Market Downturn appeared first on Crypto News Land.


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