The Dow's 1,000-point plunge: What happened?
Seemingly out of nowhere, the stock market plummeted in the middle of the trading day. Was it a technical error, or something more worrying?
In the middle of trading on Thursday, the Dow plunged so quickly and so sharply, that many commentators — including Jim Cramer on CNBC (see video below) — suggested a bizarre technical mishap must have been to blame. At around 2 p.m., in the middle of what had been a fairly average session, the Dow suddenly dropped nearly 1,000 points, constituting its worst intraday fall since 1987. Then, again in a matter of minutes, it bounced back most of the way to even. The sudden, enormous moves left market observers baffled. It must have been "a glitch in the tape," Cramer hypothesized on CNBC. "The machines failed." While the New York Stock Exchange has reportedly denied having technical problems, CNN Money says that "faulty" stock quotes were at least partly to blame. Either way, investors are "spooked," says Matt Phillips at The Wall Street Journal. They have reason to be: At the close of trading, the Dow still down nearly 350 points. Watch a video of CNBC's broadcast during the plunge:
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
-
Who actually needs life insurance?
The Explainer If you have kids or are worried about passing on debt, the added security may be worth it
By Becca Stanek, The Week US Published
-
Sexual wellness trends to know, from products and therapies to retreats and hotels
The Week Recommends Talking about pleasure and sexual health is becoming less taboo
By Theara Coleman, The Week US Published
-
Is the AI bubble deflating?
Today's Big Question Growing skepticism and high costs prompt reconsideration
By Joel Mathis, The Week US Published