What name is given to the sudden U.S. market plunge on May 6, 2010?

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

The Dow Jones Industrial Average dropped about 1,000 points, or roughly 9%, within minutes before recovering much of the loss. The event affected stocks, futures, options, and exchange-traded funds, but the speed and partial recovery made it different from a conventional, sustained bear-market crash.

Investigations by U.S. regulators concluded that a large automated order to sell E-mini S&P 500 futures interacted with high-frequency trading and liquidity conditions. The precise market dynamics were complex, and many securities briefly traded at irrational prices. A later U.S. Justice Department case identified trader Navinder Singh Sarao's spoofing as a contributing factor, but the event also reflected broader structural weaknesses.

The crash prompted new controls, including circuit breakers and tighter monitoring of automated trading. It is often confused with later flash crashes, but its date and scale identify this particular event.