The 2010 Flash Crash caused a sudden plunge and rapid rebound in U.S. equities.
On May 6, 2010, major U.S. stock indexes dropped sharply within minutes before recovering much of the loss. The Dow Jones Industrial Average briefly fell by about 1,000 points, then rebounded. Some individual securities briefly traded at extremely low or high prices.
Investigations found that automated trading and unusual market conditions played central roles. A large sell order in E-mini S&P 500 futures interacted with high-frequency trading and reduced liquidity, accelerating the decline. The event demonstrated how quickly modern electronic markets could transmit selling pressure.
The Flash Crash was not the same as a conventional bear market, which develops over a longer period. Regulators introduced or strengthened safeguards such as circuit breakers, single-stock volatility pauses, and clearer procedures for reviewing clearly erroneous trades.