Written By On Wednesday, July 8th, 2020, the New York Stock Exchange (NYSE) halted trading in dozens of blue-chip stocks due to a technical glitch. The halt affected companies such as Walmart, Amazon, Microsoft, and Apple. The cause of the trading halt was still unknown at the time of writing this article. However, the incident sheds light on some of the dangers that accompany automated trading systems and algorithmic decision making in financial markets. In this blog post, we will explore what caused the NYSE glitch and how algorithmic trading is putting investors and markets at risk.
What caused the trading halt?
The New York Stock Exchange (NYSE) temporarily halted trading in dozens of blue-chip stocks on Wednesday after a “technical glitch” caused a widespread outage.
The halt affected stocks such as Apple, Alphabet, Amazon, Facebook, and Microsoft. Trading resumed after about 30 minutes, but the incident raised concerns about the stability of the stock market.
There is no word yet on what caused the technical glitch. However, the NYSE has said that it is investigating the matter and working to restore normal trading operations.
How long did the trading halt last?
The trading halt lasted for around three hours, from 2:40 p.m. to 5:30 p.m.
Which stocks were affected?
The NYSE glitch caused a temporary trading halt in dozens of blue-chip stocks, including Apple, Amazon, Google, and Facebook. These stocks were affected because they are all traded on the NYSE. The NYSE is a stock exchange that is used by many traders to buy and sell stocks. When the glitch occurred, it caused a delay in the trading of these stocks. This meant that traders could not buy or sell these stocks for a period of time.
What was the market reaction?
The market reaction to the NYSE glitch was mixed. Some investors were worried that the stock market was in trouble, while others viewed it as a minor setback. Overall, the market seemed to be relatively calm considering the circumstances.
Conclusion
The NYSE glitch caused a temporary trading halt in dozens of blue-chip stocks, raising questions regarding the security and reliability of online financial systems. The root cause remains unknown; however, this incident should be taken as a reminder to investors that digital markets can experience unexpected disruptions despite their reputation for reliability. As such, it is important for all market participants to remain vigilant and take necessary precautions when engaging in digital transactions.
