For the first time in more than a century, weather has stopped U.S. equity trading for two straight days as Hurricane Sandy swept across New York City.
Stock trading was canceled for a second day, joining bond markets, as 90-mile-per-hour winds and surging seas paralyzed American capital markets. The shutdown, the first for consecutive days due to weather since 1888, was announced by NYSE Euronext after consultations with other exchanges. The Securities Industry and Financial Markets Association earlier recommended a full market close Tuesday in dollar-denominated fixed-income securities after they shut at noon New York time yesterday.
"It's an unprecedented event coordinated with an unprecedented storm," Ryan Larson, the Chicago-based head of U.S. equity trading at RBC Global Asset Management (U.S.) Inc., said in a telephone interview. His firm oversees $250 billion in assets. "The response from the exchanges and regulators in terms of the closing of the market was certainly appropriate and remains appropriate for the exchanges to be closed tomorrow as well."