NYSE Glitch Sparks Major Swings in Stocks; Market Resilient Amid Economic Uncertainties
June 4, 2024A 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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