The 2010 Flash Crash caused a sudden, temporary plunge in major U.S. stock indexes within minutes.
On May 6, 2010, U.S. equity markets experienced an exceptionally rapid fall and partial recovery. The Dow Jones Industrial Average briefly lost nearly 1,000 points, or about 9 percent, before recovering much of the decline. Individual securities also traded at extremely unusual prices.
Investigations found that a large automated order to sell E-mini S&P 500 futures interacted with existing market conditions and high-frequency trading activity. Liquidity providers pulled back or reduced participation, helping amplify the move across connected markets.
The event differed from a conventional bear market because its most dramatic movement unfolded within minutes and much of the decline reversed the same day. Regulators later introduced or strengthened safeguards, including circuit breakers and controls for clearly erroneous trades.