Will stock crash on Friday after a massive sell off today?
Peter Oberois
May 6, 2010

Dow Jones industrials to a loss of almost 1,000 points before recovering. A computer error caused the glitch according market rumors? Was it really that or is it just of the next leg of the global meltdown triggered by national bankruptcy like Greece?

Dow Jones industrials dropped freeely to a loss of almost 1,000 points, nearly a tenth of their value, in less than half an hour. It was the biggest drop ever during a trading day. Then finally in a brisk recovery it regained most of that paper loss quickly to close 348 points lower than yesterday.

The lightning-fast plummet temporarily knocked normally stable stocks such as Procter & Gamble to a tiny fraction of their former value and sent chills down investors'' spines.

According to some analysts it is just a dress reharsal of the real thing coming when the Governmnet stimulus money runs its course.

No one was sure what happened, other than automated orders were activated by erroneous trades. One possibilility being investigated was that a trader accidentally placed an order to sell $16 billion, instead of $16 million, worth of futures, and that was enough to trigger sell orders across the market.

Nasdaq issued a statement two hours after the market closed saying it was canceling trades that were executed between 2:40 p.m. and 3 p.m. that it called clearly erroneous. It did not, however, mention a cause of the plunge.

The SEC issued a statement saying regulators are reviewing what happened and "working with the exchanges to take appropriate steps to protect investors."

Will stock crash on Friday after a massive sell off today?
Peter Oberois
Dow Jones industrials to a loss of almost 1,000 points before recovering. A computer error caused the glitch according market rumors? Was it really that or is it just of the next leg of the global meltdown triggered by national bankruptcy like Greece?
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