Dow Recovers After Plunge
Trading glitch may have contributed to 1,000 point tumble.
We’re still alive, it seems: After falling 980 points earlier in the day—the largest single day drop since 1987—the Dow recovered to end the day down a mere 347 points, or 3 percent, to 10,520. All major indexes lost three percent, and it was the third consecutive day of a 200-point-plus decline. Some say the dive was fueled by fears of the Greek debt crisis. However, some are pointing at "a technical glitch hastened the selling.” Due to the reported glitch, in which a trader may have mistyped a "b" for billion instead of an "m" for million, Procter & Gamble appeared to drop a massive 37 percent, though it really fell only 10 percent to $56 on the NYSE. However, other stock exchanges such as Nasdaq began reporting the erroneous price of $39.37. That error alone contributed to a 172-point drop in the Dow. Nasdaq didn't confirm the mistake, but has said it will cancel all trades made between 2:40 and 3 p.m. “greater or less than 60 percent away from the consolidated last print in that security at 2:40 pm or immediately prior.”
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