The 2010 Flash Crash unfolded over about 36 minutes, during which U.S. markets lost and largely recovered trillions of dollars in value.
On May 6, 2010, major stock indexes and individual securities experienced an exceptionally rapid plunge. The Dow Jones Industrial Average fell nearly 1,000 points, or about 9%, before recovering much of the loss. Some individual stocks briefly traded at extraordinarily low prices.
The event was linked to interactions among high-frequency trading, automated orders, market liquidity, and a large sell order. Investigations later focused on the actions of trader Navinder Singh Sarao, who was convicted in the United States in connection with spoofing-related conduct.
The Flash Crash was not a traditional multi-month bear market. Its defining feature was speed: prices moved violently downward and then rebounded within the same afternoon. Regulators subsequently introduced or strengthened safeguards, including trading pauses for individual securities and broader market circuit breakers.