The extreme May 6, 2010 market event was officially known as the Flash Crash.
On May 6, 2010, major U.S. stock indexes dropped rapidly and then recovered much of the loss within minutes. The Dow Jones Industrial Average briefly fell about 1,000 points, roughly 9%, before rebounding. Some individual securities traded at extraordinarily low prices during the turmoil.
Investigations found that automated trading and market conditions interacted in a way that amplified selling. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission later described a large sell order and high-frequency trading activity as important parts of the episode.
The event differed from a conventional bear market because its most dramatic movement occurred within minutes rather than over months or years. Regulators subsequently introduced measures including circuit breakers and other controls intended to slow trading when prices move exceptionally quickly.