The 2010 U.S. market event in which prices plunged and recovered within minutes was the Flash Crash.
On May 6, 2010, major U.S. stock indexes dropped rapidly before recovering much of the loss. The Dow Jones Industrial Average briefly fell about 1,000 points, or roughly 9 percent, during the session. Many individual securities experienced extreme and temporary price movements.
Investigations found that automated and high-frequency trading interacted with unusually stressed market conditions. A large sell order in E-mini S&P 500 futures was identified as an important trigger, while the broader event reflected complex interactions among algorithms, liquidity, and trading venues.
The Flash Crash differed from a traditional bear market because its most dramatic movements occurred over minutes rather than months or years. Regulators subsequently introduced or strengthened safeguards such as circuit breakers and single-stock volatility pauses.