Do you follow the stock market? Tuesday was not a good day. It started in China with a meltdown and the sell off worked its way across the globe including the Dow in New York.
It was the biggest down-day in percentage terms since 9/11. Over 500 point drop ❗
Guess what exacerbated a day of routine sell off and turned into a holy terror on the trading floor?
Here’s the scoop from CNN Money, it’s good:
The publisher of the Dow industrials said that a system problem starting at 1:50 p.m. ET on Tuesday, amid unusually heavy trading volume, caused a 70-minute lag during which the value of the market measure lagged the declines in the underlying stocks.
The subsequent downward spike in the Dow occurred when the problem was corrected as the company switched to its backup system at around 3 p.m.
Just before the switch, the Dow was showing about a 160-point drop. But then the blue-chip barometer appeared to tumble some 200 points in the blink of an eye as the newly available data was correctly reflected in the average.
That drop then sparked nervousness among traders and the Dow fell another 100 points or so, eventually ending down 416, its seventh-biggest point decline ever.
What happened over a short period of time should have happened over a longer period, explained a Dow Jones spokeswoman.
To see the market drop hundreds of points out of nowhere was alarming, to hear that it was a technical glitch really pissed people off,” said Peter Boockvar, chief equity strategist at Miller Tabak & Co.
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