NEW YORK – Computer malfunctions due to heavy trading in yesterday’s global selloff made the Dow Jones Industrial Average appear to plummet 178 points in a single minute. The New York Stock Exchange also reported “intermittent” delays yesterday and Nasdaq reported slower-than-usual distribution of some data.
“The extraordinary heavy trading volume caused a delay in our … data,” Sybille Reitz, a spokeswoman at Dow Jones & Co., told Bloomberg News. “As we identified the problem, we switched over to a backup system and the result was a rapid catch-up in the public value for the Dow.”
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
Learn More
The plunge, said Michael Driscoll senior managing director at Bear Stearns took place “literally in a couple of seconds.” It fueled a surge in new orders that overwhelmed stock-exchange computer systems and left some traders resorting to pen and paper. “It’s frightening when you’re in the New York Stock Exchange and you can’t trade,” said Warren Meyers, a managing director at NYSE brokerage Walter J. Dowd Inc.
The Dow ended the day down 416.02 points or 3.3 percent at 12,216.24, in its worst day since March 2003, and the Nasdaq Composite Index closed down 96.66 points or 3.9 percent at 2,407.86 in its worst day since December 2002. But stocks rebounded this morning; at 10:52 a.m., Bloomberg said, the Dow was up 115.84 points or 1 percent to 12,332.08, the S&P 500 was up 13.58 or 1 percent to 1,412.62 and the Nasdaq Composite was up 16.81 or 0.7 percent to 2,424.67 points.
