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Stock markets fall 0.5% in minutes, leaving traders perplexed

Stock MarketsMay 04, 2021 09:02AM ET
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© Reuters. FILE PHOTO: The London Stock Exchange Group offices are seen in the City of London, Britain, December 29, 2017. REUTERS/Toby Melville

LONDON (Reuters) -U.S. and European stock markets saw a sudden 0.5% drop in hefty volumes around 1130 GMT on Tuesday, leaving traders scratching their heads and one calling it a "micro flash-crash".

Nasdaq stock futures fell 0.5% in four minutes while the S&P 500 e-mini futures fell 0.4%. They later added more losses to trade 0.9% and 0.6% lower respectively.

Europe's benchmark STOXX 600 index also turned negative during the quick-fire selloff and was last trading 0.8% lower.

"Not a great deal of movement in other assets but equity futures hit an air pocket," said an equity sales trader based in London. "Looking at the price action and volume, a sense the machines took over for a second and resulted in a micro flash-crash."

The volatility appeared to boost demand for safe-haven bonds, with the 10-year U.S. Treasury yield dropping almost 2 basis points to 1.591% before creeping back above 1.6%.

Stock markets fall 0.5% in minutes, leaving traders perplexed
 

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Comments (4)
mat connors
mat connors May 04, 2021 10:29AM ET
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How about its time for a correction??? What click bait.
Roger Miller
Roger Miller May 04, 2021 9:42AM ET
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“the machines took over for a second”...maybe the machines know something we don’t, or they’re only acting rationally vs humans irrational behavior.
Connecticut Yankee
A_Jaundiced_Eye May 04, 2021 9:09AM ET
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Crazy as it sounds, I wouldn't put it past the North Koreans to place a few shorts, then hack into some broker's system to place a few sell orders to drive the stocks down to make some profits.
Stephen Fa
Stephen Fa May 04, 2021 8:38AM ET
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Canary in the coal mine perhaps
 
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