The Dow Jones Industrial Average fell about 1,000 points during the 2010 U.S. Flash Crash on May 6, 2010.
During the afternoon of May 6, major U.S. equity indexes plunged rapidly before recovering much of the loss. The Dow’s fall was approximately 9 percent at its worst point, while many individual securities briefly traded at extremely low or high prices.
Investigations concluded that automated trading, market liquidity problems, and a large sell order in an E-mini S&P 500 futures contract interacted in ways that accelerated the decline. The U.S. Securities and Exchange Commission and Commodity Futures Trading Commission published a joint report describing the event and its mechanics.
The Flash Crash differed from a conventional bear market because its most dramatic movement unfolded in minutes and much of it reversed the same day. Some trades were later canceled under exchange rules. The episode led to changes involving circuit breakers, order handling, and market surveillance.