What event is named for the sudden U.S. stock-market plunge on 6 May 2010?

The sudden U.S. stock-market plunge on 6 May 2010 is known as the Flash Crash.

During the event, major U.S. equity indexes fell rapidly and then recovered much of the loss within minutes. The Dow Jones Industrial Average briefly dropped nearly 1,000 points, one of its largest intraday point declines at that time. Prices in individual stocks and exchange-traded funds also became unusually dislocated.

Investigations concluded that automated trading, market liquidity, and a large sell order contributed to the episode. A later U.S. investigation charged trader Navinder Singh Sarao with contributing to the crash through spoofing-related activity, although the event reflected a broader interaction of electronic-market systems.

The Flash Crash was not a conventional multi-year bear market. Its defining feature was the extraordinary speed of the fall and partial rebound, which exposed weaknesses in safeguards for highly automated markets.