The 2010 U.S. market event in which major indexes plunged and recovered within minutes was the Flash Crash.
On May 6, 2010, U.S. stock indexes experienced an exceptionally rapid decline followed by a partial recovery. The Dow Jones Industrial Average briefly fell nearly 1,000 points, one of its largest intraday point drops at the time.
Investigations found that automated trading, market liquidity problems, and a large sell order contributed to the episode. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission concluded that the interaction of algorithmic trading and stressed market conditions amplified the move.
The Flash Crash differed from traditional crashes because much of the fall and rebound happened within minutes rather than over days or months. It led to new safeguards, including circuit breakers designed to pause trading during extreme moves.