Dow Jones – Human error’ behind huge Dow Jones share market plunge!
There is a great possibility that the trading blunder by one person can wreck the share market of the United States in one night. If the trading error happens in the investment market or bank, this problem is called fat finger. The horrible crash in the American history in share market happened at 2.25 pm, the local time. The shares of the prices plunged to points 998.5 that were about nine percent of the whole. About 30 top companies saw this wipe out of billions with in just 20 seconds. When the markets opened next after 9/11, the marketers were shocked to see the wrecked Lehman Brothers. After the incident, the rumors started to disseminate that a trader mistakenly in a transaction of Procter and Gamble, entered the word ‘M’ for million instead of a ‘B’ for billion. This little blunder reportedly wrecked the whole market condition. This small mistake led to the greatest plunge in the historical background of the average Dow Jones Industrials.
The shares’ price went down from $61.56 US to $39.37 US per share that were invested in the Procter and Gamble but it again bounced back in no time. The Procter and Gamble affirmed later that drop in the prices of the shares was due to an error. The company said that they cannot comment or explain the individual transaction but the trade was undoubtedly a grave error. Another powerhouse named Accenture working as management consultant was also affected by the hitch. The trading on the opening was with the price of $41.78 US which in no time it drastically dropped to 1 US cent, as reported by the Zdnet. At last, the shares again recovered to $41.09 US in next few minutes. It was reported then to CNBC the responsible firm for all this glitch was Citigroup that tackled the trade of Procter and Gamble wrongly. The bank responded that there was no clue that the trade was badly treated but the investigation was still going on. Stock exchange of New York reported that there was no error in the system. In one day, about every major firm in US stock exchange faced 3 percent index loss which reminded the financial crisis of 2008.
When the market closed that day, the NASDAQ firm was at 2319.64 with 82.65 points down. While the Dow Jones was 347.80 points down and recovered back at 10,520.32. The 500 index of the Standard and Poor’s was at 1,128.15 with 37.72 points down. There were severe reservations that the greatest plunge has led to the debt issues of Greece which would restrict the revival of international economy. There are fears in the market that the Greece would be unable to put into practice the stern measures that would facilitate the govt. to hold back the debt issues which in turn would be able to hurt not only the US but some big financial hubs of the Europe too. This depression of the Greek would be able to hurt the great US and European economies if not dealt properly.