The 6 May 2010 U.S. market plunge and rapid partial recovery is commonly called the Flash Crash.
The Dow Jones Industrial Average dropped about 1,000 points, or roughly 9%, within minutes before recovering much of the loss. Numerous individual stocks and exchange-traded products experienced extreme temporary price movements, including trades at fractions of their earlier values.
Investigations identified a combination of market stress, high-frequency trading, automated order systems, and a large sell order as important contributors. The event revealed how quickly electronic markets could amplify a disturbance across venues.
A 2014 U.S. federal court convicted British trader Navinder Singh Sarao of spoofing-related conduct connected to the crash, although official analyses described the event as involving multiple interacting causes. The episode led to stronger market-wide circuit breakers and controls on extreme price moves.