The 2010 Flash Crash took about 36 minutes for U.S. stock indexes to plunge and largely recover.
On May 6, 2010, U.S. markets experienced an exceptionally rapid decline. The Dow Jones Industrial Average dropped nearly 1,000 points, or about 9%, before recovering much of the loss by the end of the session. The event began in the afternoon and unfolded far faster than a conventional market panic.
Investigations by U.S. regulators found that a large automated sell order interacted with high-frequency trading and market conditions, producing a feedback loop of aggressive selling and disappearing liquidity. The precise mechanics were complex, and several later legal proceedings examined the role of trader Navinder Singh Sarao.
The crash led exchanges and regulators to develop safeguards including circuit breakers and limit-up-limit-down rules. It is distinct from the 1987 Black Monday crash, which was severe but unfolded over a full trading day.