Updated: 8:29 PM UTC, Jul 16, 2017

The 10 Minute Market Crash Of 2010

On May 6th, 2010, The New York Stock Exchange suffered its first "Flash Crash". It fell by almost 1000 points before regaining 600, all in just 10 minutes. This very short but intense crash, virtually bankrupting major multinationals, was caused by high-frequency trading, based on automated sales algorithms which created a chain reaction.

Media

Audio from the S&P 500 futures pit at the CME during the "flash crash" of 2010. The May 6, 2010 Flash Crash also known as The Crash of 2:45, the 2010 Flash Crash or just simply, the Flash Crash, was a United States stock market crash on May 6, 2010 in which the Dow Jones Industrial Average plunged about 900 points—or about nine percent—only to recover those losses within minutes. It was the second largest point swing, 1,010.14 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history. On May 6, US stock markets opened down and trended down most of the day on worries about the debt crisis in Greece. At 2:42 pm, with the Dow Jones down more than 300 points for the day, the equity market began to fall rapidly, dropping more than 600 points in 5 minutes for an almost 1000 point loss on the day by 2:47 pm. Twenty minutes later, by 3:07 pm, the market had regained most of the 600 point drop
  • Source 1: Web searches
  • Source 2: Etymonline Online Etymology Dictionary

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