May 6 Stock Market Plunge

Flash Crash Panel to Discuss Reforms with SEC, CFTC

The May 6 "flash crash" is still somewhat of an enigma, but an advisory panel meeting on Friday to review a report into it could at least help regulators establish some new market rules to prevent similar crashes from occurring in the future, Reuters reports.

ETFs at Midyear: Investments Keep Pouring In

The first half of 2010 has been anything but dull for exchange-traded fund investors. ETF assets in the U.S. decreased 0.4% to $772 billion as of June 30, but that actually indicates a serious inflow of cash: Equity markets, as measured by the S&P 500, fell 8.9% during the period.

What's Fueling Stocks' Late-Day Price Swings?

More and more evidence points to high-frequency traders, who could now account for some 50% to 70% of all trades. And some have rules against carrying open positions after the close of trading. Time for a speed limit?

New SEC Rules May Do More Harm Than Good

The SEC's decision to leave exchange-traded funds out of proposed new circuit breaker rules designed to avoid a repetition of the May 6 stock market "flash crash" may do more harm than good.

ETF Lessons From the May 6 Flash Crash

The Flash Crash of May 6 was a day of reckoning of sorts for investors in exchange-traded funds. ETFs didn't cause the meltdown, but they were certainly among its victims.

How the New SEC Circuit Breakers Are Wired

Under the SEC proposal, any S&P 500 stock that experiences a 10% swing within five minutes would receive a timeout, and trading in that stock would pause for five minutes across all domestic equity markets. That last point is key.

EU Shock-and-Awe Rescue Plan Burns the Bears

Monday's relief rally in global stock markets is almost certainly overdone, but make no mistake: The European Union's sovereign debt rescue package just exploded a large chunk of the bearish case for stocks.

Market Turmoil Sends a Signal: Diversify!

Investors have been reminded by the recent market meltdown of the need for diversification to reduce risk to their portfolios. How much risk is the right amount, and should you flee to gold as a safe haven?

Is the VIX Signaling the End of the Bull Market?

Is the market pullback that began on April 26 and accelerated wildly with Thursday's 1,000-point free-fall and recovery just part of a normal bull market correction, or is it confirmation that a bear market has begun? The VIX may have the answer.

One Manager's Way of Immunizing Against Panics

Is the modern-day Greek tragedy that's roiling the markets driving you nuts and sending you racing for a defensive strategy? Peter Newell, managing director at Swiss-based Vontobel Asset Management, has a stock-picking approach that avoids such global calamities.

Domino Effect Sends Asian Markets Down

Shares in Asia plummeted Friday, following the turmoil in the U.S. markets. In Japan the Nikkei tumbled 3.1%, in China the Shanghai Composite Index sank 1.9%, and Hong Kong's Hang Seng fell 1.1%.

Global Markets Drop After U.S. Meltdown

Asian markets plummeted Friday morning, with Japan's Nikkei 225 stock average dropping 3.1%. European stocks also moved lower. In the U.S., investors are digesting a key employment report which showed the best job growth in 4 years.

Rumors Swirl as Market Plunges on Debt Fears

Amid a market growing increasingly paranoid about Europe's debt crisis, errors -- either human or mechanical -- were pointed to as potential reasons for Thursday afternoon's stock market plunge. But a more deliberate force could also be at work as investors short the markets and the euro sought to take advantage of the mounting alarm about Europe's situation.

Did a Trader's Error Worsen the Market Fall?

Wall Street collectively watched its life flash before its eyes Thursday as the DJIA suffered the single worst intra-day drop in its history. But were legitimate concerns about Europe exacerbated by human error, only to be compounded by high-frequency automated trades that ripped the bottom out of the market?

Gold Shines as Markets Take a Bumpy Ride

As the stock market fell nearly 1,000 points before closing down 347 points on Thursday, investors flocked to gold proving that the yellow metal is still considered a safe haven in times of uncertainty.

How Investors Should React to the Plunge

Thursday's panicked stock sell-off connected to the Greek debt crisis could be the start of this decade's fourth great market plunge. But it could also present some real opportunities.

Dow Drops Nearly 1,000 Points Before Paring Loss

The Dow fell nearly 1,000 points in afternoon trading before bouncing back to a 350 point loss. Traders piled out of equities and into the relative safety of Treasurys and the U.S. dollar. Oil prices plummeted and gold touched $1,200 an ounce.