NYSE Glitch Sparks Major Swings in Stocks; Market Resilient Amid Economic Uncertainties

June 5, 2024
NYSE Glitch Sparks Major Swings in Stocks; Market Resilient Amid Economic Uncertainties
  • A technical glitch at the New York Stock Exchange on Monday caused major swings in shares of Berkshire Hathaway and Barrick Gold, leading to trading halts for multiple stocks.

  • The issue was attributed to a new software release by the Consolidated Tape Association, which affected limit up-limit down bands designed to prevent extreme price movements.

  • Despite initial drops, trading resumed with minimal impact on overall market sentiment.

  • This incident marks the second stock market hiccup in less than a week, raising concerns about market stability.

  • The NYSE, which has faced scrutiny for previous glitches, announced plans to reimburse investors for losses in a previous incident but did not confirm if the same would apply to Monday's issue.

  • On Tuesday, U.S. stocks were mixed amid a report indicating a cooling job market and a slowing economy.

  • The S&P 500 and Nasdaq edged up slightly, while the Dow rose, and Treasury yields declined, prompting expectations for interest rate cuts by the Federal Reserve.

  • Concerns about a potential recession were raised as job openings dropped and manufacturing contracted.

  • Despite economic uncertainties, the market showed resilience, with dividend-paying stocks and Big Tech companies performing well, while some companies experienced losses despite positive earnings.

  • Oil prices fell, impacting oil and gas stocks, and investors have shown interest in bonds amidst economic slowdown concerns, while stocks hold near record levels.

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