Warren Buffett’s Company Plummets 99% on Stock Market Due to Technical Error
Technical Glitch Causes Chaos on NYSE
Today will be remembered for a long time in the financial sector: due to a technical glitch in the NYSE systems, some stocks, including Warren Buffett’s Berkshire Hathaway, plummeted by 99%!
Market Turmoil and Speculation
Unsurprisingly, the news threw markets into turmoil, with wild speculations about the company (which turned out to be unfounded) and the temptation, succumbed by many, to scoop up a historically reliable stock at a bargain price, regardless of any negative news.
However, the orders were not executed.
Widespread Impact
The technical issue also impacted other stocks such as Barrick Gold and Nuscale Power.
The NYSE attributed the problems to the price bands published by the Consolidated Tape Association, the organization used by major exchanges to collectively provide real-time stock quotes.
Resolution and Explanations
Around 11:45 am ET, the NYSE announced that the issues had been resolved and trading had returned to normal.
The CTA stated that between 9:30 and 10:27 ET, there was a problem with the limit up and limit down price bands, designed to combat market volatility.
The glitch may have been caused by a new software release.
Final Notes
The CTA reported a total of 49 affected stocks.
When trading was halted, less than 4,000 trades were recorded for Berkshire’s class A shares.
Trading resumed with class B shares, which saw a drop of less than 1% on Monday morning.
