What term describes the sudden U.S. stock-market plunge on May 6, 2010?

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

The Dow Jones Industrial Average briefly lost about 1,000 points, or roughly 9%, within minutes before recovering much of the decline. Many individual securities experienced extraordinarily rapid price movements, including some trades at implausibly low prices.

Investigations concluded that automated trading and a large sell order interacted with a stressed market and rapidly reduced available liquidity. A 2015 U.S. Justice Department case charged trader Navinder Singh Sarao with spoofing and market manipulation connected with the event, though the crash’s mechanics involved broader market conditions and trading systems. The episode led regulators and exchanges to strengthen trading pauses and safeguards.