The panic on Wall Street on Thursday, May 6, may have been caused by a trader who, mistakenly, punched into a computer that he wanted to sell $16 billion worth of futures, when he meant to type in $16 million, the Associated Press is reporting.
Says the report, "A computerized selloff possibly caused by a simple typographical error triggered one of the most turbulent days in Wall Street history Thursday and sent the Dow Jones industrials 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.
"The Dow recovered two-thirds of the loss before the closing bell, but that was still the biggest point loss since February of last year. 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."
Stocks of most big media companies ended the day down around 4% to 6%, MediaPost reported.