Print 24 comment(s) - last by SunAngel.. on Mar 2 at 11:05 AM

A computer glitch caused Dow Jones to drop around 200 points almost instantly

A sudden drop by the Dow industrials near the final hour of yesterday's trading day was caused by a computer glitch by the Dow Jones Industrial Average (DJIA) data system, which temporarily shocked financial analysts.  The problem with the computers began at around 1:50 PM yesterday during a heavy selling event that caused a near 70-minute time lag in which the value of the DJIA wasn't calculated properly.  The Dow Jones & Co. switched to a backup computer almost an hour later due to the record volume of trades that were happening.

"The market's extraordinary trading volume caused a delay in the Dow Jones data systems," said Sybille Reitz, Dow Jones spokeswoman.    

The Dow Jones Industrials was driven down more than 400 points yesterday, the biggest losses the market has seen since the Sept. 11, 2001 terrorist attacks.  The glitch that caused the near-instant drop of 200 points almost caused a high level of panic, which analysts believe pushed the day price down even further.

The closing price of Tuesday's exchanges was correct, according to Dow Jones & Co.  Dow Jones Indexes is now currently investigating the computer issues to try and correct the source of the problem as soon as possible.

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Computer glitch
By Trisped on 2/28/2007 9:12:58 PM , Rating: 2
Personally, it sounds like the DJIA didn't have enough processing power to deal with the volume. From what I hear there is a lock down in one of the Asian stock markets so there is a "If I can't sell what I want, I will sell what I can" effect. I am not sure on that though.

What I am sure on is that it sounds like a hardware limitation, and rather then blaming the hardware creator, blame the hardware owner. Hardware like CPUs are pretty predictable. If you don't have enough hardware to process your work load it is your responsibility to get more hardware to deal with the lack.

What really surprises me is that it took them an hour to figure out that the computer was overloaded and that they needed to turn on the back up.

RE: Computer glitch
By killerroach on 2/28/2007 10:04:50 PM , Rating: 3
The writeup is pretty vague as to the actual end result of the glitch... the 200 point drop was real, not caused by the glitch. It just took a heck of a lot longer to register due to the software glitch, making it appear almost instantaneous.

RE: Computer glitch
By James Holden on 3/1/2007 12:33:16 AM , Rating: 3
Yes, but as a result of that near-instataneous drop the market panicked and sent the market down further.

RE: Computer glitch
By Trisped on 3/1/2007 6:30:01 PM , Rating: 2
So it seems China was having a market problem, so they shut down their stock market which could be the reason for the excessive drop in stock prices here in America (again the "If I can't sell what I want, I will sell what I can" effect).

And of course any large changes in US stocks will set off the auto sell/buy triggers that home investors use, resulting in larger numbers of trades, requiring more computer power to process, etc.

Of course there has also been talk about a coming correction for a while, so the market instability has been expected world wide for a while. Nothing big, just another dip after a long rise, but I digress...

Maybe you could check
By SuperJesus on 2/28/2007 10:12:40 PM , Rating: 2
RE: Maybe you could check
By SunAngel on 2/28/07, Rating: -1
RE: Maybe you could check
By CrystalBay on 2/28/07, Rating: -1
RE: Maybe you could check
By SunAngel on 2/28/2007 10:58:28 PM , Rating: 1
translation please.

RE: Maybe you could check
By ebakke on 3/1/2007 3:44:12 AM , Rating: 2
Agreed. I have absolutely no idea what s/he was trying to say.

RE: Maybe you could check
By Trisped on 3/1/2007 6:43:04 PM , Rating: 2
He is trying to politely warn you that you are being too hostel and might want to not post for a while.

"Hey SA, your way OverExposed you Boarder Bros. might want to scoot back over the fence.
OverExposed=you are drawing too much attention
Boarder=what others see of you, can also be interpreted as "your self"
scoot back over the fence=keep your head down, stop attracting attention, etc.

Hope this helps

RE: Maybe you could check
By SunAngel on 3/2/07, Rating: -1
Political Ploy?
By Dhaval00 on 2/28/2007 9:55:28 PM , Rating: 2
Is it me, or does everyone thinks that the government just needed an excuse - the 'nothing else, so blame it on technology' effect??
Simply put, the Chinese have a greater control over the World economy and in my opinion all the selling that happened day before yesterday in China, led to the losses here. The Government just needed an excuse.

Damn AMD chips
By SunAngel on 2/28/07, Rating: -1
RE: Damn AMD chips
By phaxmohdem on 2/28/2007 6:21:37 PM , Rating: 4
Last I heard they used quad hamster machines. I guess they forgot to feed them.

RE: Damn AMD chips
By CrystalBay on 2/28/2007 6:35:43 PM , Rating: 2
Software glitch ?

RE: Damn AMD chips
By SunAngel on 2/28/07, Rating: -1
RE: Damn AMD chips
By phaxmohdem on 2/28/2007 8:12:46 PM , Rating: 2
Both? A CPU wouldn't do anything without software to tell it what and how to compute.

RE: Damn AMD chips
By Tupolev22m on 2/28/2007 7:43:47 PM , Rating: 2
Troll much?

Clearly some theoretical AMD chips were responsible for a software glitch.

RE: Damn AMD chips
By SunAngel on 2/28/07, Rating: -1
RE: Damn AMD chips
By ebakke on 2/28/2007 8:14:00 PM , Rating: 4
I can't tell if your series of posts are aimed purely at generating a rise out of others, or if you're genuinely just that stupid.

RE: Damn AMD chips
By Trisped on 2/28/2007 9:22:03 PM , Rating: 1
She seems to be a legit poster, if maybe a little negative.

She was making a joke about trolling, though I always thought trolling was a geek reference to how trolls hide under bridges and jump out and take your money.

Yeah, neither one makes sense to me.

Oh, and it would be a hardware issue more then a software issue. Bugs cause things like bad data and crashes. Not being able to handle a work load may be a result of sloppy/resource hungry code, but in this case is probably a limitation on the hardware speed side. Of course with that large of a database and that many transactions, it could have been a storage access problem as well as a CPU limitation. Probably just a CPU problem though since bringing another server up fixed the problem.

RE: Damn AMD chips
By Samus on 3/2/2007 3:35:16 AM , Rating: 2
little do you know...that 'she' is really a sweaty 50-year-old divorced tow truck driver that has 2 felonies for humping a bikerack on school grounds.

Oh No!
By Dodgeballa03 on 2/28/07, Rating: -1
“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls

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