The freakish action bears hallmarks of past episodes in which computer malfunctions led to sudden price distortions. While the probe was just getting started, the NYSE pointed to rules that could allow member firms affected by the swings to undo some of the damage.
The New York Stock Exchange is probing what caused wild price swings and trading halts when the market opened on Tuesday as shares for dozens of the biggest US companies suddenly plunged or spiked.
A “technical issue” that the exchange didn’t immediately identify resulted in some gyrations that spanned almost 25 percentage points between the high and low in a matter of minutes. Banks, retailers and industrial companies were among those affected, including Wells Fargo & Co., McDonald’s Corp., Walmart Inc. and Morgan Stanley.
