Trader Error caused Biggest Market Drops in History
Yesterday is truly the craziest day in the stock exchange history. It’s only happen about half-hours which began shortly after 2.p.m ET and the Dow plunge nearly 1000 points (S&P 500 plunge nearly 100 points) before up again to pare its losses. And all of these seems triggered by a trader error who entered a billion instead of a million for his trade. There still further investigation for this market volatility.
As we can seen together, yesterday is one of the biggest market drops in a day in history. The biggest one day percent drop in history was 22.6% in October 1987.
From the chart, we can see that yesterday movement really volatile. It needs 2 months to rise and just need one day to come back at the previous level.
Severe drops in US Market yesterday followed by drops in another stock market arround the world today include Nikkei, Hanseng, Straith Times and JCI (IHSG)
The good thing is US Futures Market after closed remains positive. It’s slightly bullish, but we don’t know what will happen several hours again.
For the next fundamental view, major investor still concern about the Greece debt problem. The riots happen in athens showed the decision to repay the debt was not going to be made by the people in all Europe country, but the people in Greece itself and they’re not going to repay it. Any collapse of Greece could trigger a wave of defaults accross the world
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