Profit loss as Berkshire Hathaway shares drop due to technical fault
NYSE glitch causes massive swings in Berkshire Hathaway and Barrick Gold shares, trading halts in dozens of companies before issue fixed.
A technical glitch at the New York Stock Exchange caused chaos on Monday, leading to massive swings in the shares of Berkshire Hathaway and Barrick Gold, as well as trading halts for dozens of other companies. The glitch, which was quickly addressed by the exchange, resulted in at least 60 stocks being halted due to volatility and some stocks experiencing unusual price movements.
Shares of Berkshire Hathaway and Barrick Gold plummeted by nearly 100 percent due to the technical issue before the trades were corrected. The NYSE explained that the problem was related to Limit Up-Limit Down bands, which are designed to prevent extreme market volatility and price movements by restricting trades to specific price ranges.
These bands were implemented as a response to the "flash crash" of 2010, where nearly $1 trillion in market capitalization was wiped out in a matter of minutes. Technical issues like these can have a significant impact on markets, affecting traders' confidence and drawing attention from regulators.
Despite the chaos caused by the glitch, experts like Art Hogan, chief market strategist at B. Riley Financial, believe that the overall market is not reacting negatively. While technical issues on exchanges can be disruptive, they are typically resolved quickly to minimize any lasting effects on the market.
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