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Market Update

Market Plunges, Recovers; System Error Suspected

Trading error involving Procter & Gamble stock may have helped trigger sell-off.

Morningstar.com

May 6, 2010

The stock market dropped as much as 9% then recovered to a 3% loss Thursday afternoon. The Dow Jones Industrial Average briefly dropped by almost 1,000 points just before 3 p.m. Eastern Time, before finishing with a 348-point drop by the closing bell. The S&P 500 also fell 3.2%, closing at 1,128.

CNBC reported that a trading error involving Procter & Gamble (PG) stock may have triggered the massive, temporary sell-off on a day the market was already down on European debt woes, though the actual cause is still under investigation. CNBC also reported that the New York Stock Exchange has said that no system error occurred.

As stocks dropped, investors piled into gold, sending the shiny metal up over 2.5%.

We will continue to report as more details become available.

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