The 2010 Flash Crash caused the Dow Jones Industrial Average to plunge about 1,000 points in minutes.
On May 6, 2010, U.S. stock markets experienced an exceptionally rapid fall and partial rebound. The Dow dropped about 1,000 points, roughly 9%, within minutes before recovering much of the loss. Individual securities briefly traded at extremely unusual prices.
Investigations found that automated trading played an important role. A large sell order in E-mini S&P 500 futures interacted with high-frequency trading and market conditions, producing a feedback loop of selling and rapidly changing liquidity. The event did not resemble a traditional, multi-year economic depression.
The crash led regulators and exchanges to strengthen safeguards, including circuit breakers and rules intended to slow disorderly trading. It is distinct from the 1987 Black Monday crash, which involved a much larger percentage loss over a full trading session.