Investors brace for the day after

By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) -- Stocks went on a wild ride Thursday, with the Dow industrials making a historic plunge of nearly 1,000 points before partially recovering to close down 348 ... and people are still scratching their heads wondering what happened.

Erroneous trading at Procter & Gamble (PG, Fortune 500) and several other stocks sparked the selloff, with market chatter attributing it technical glitches.

chart_ws_index_dow.03.png

But the Nasdaq dismissed rumors that the extreme volatility was the result of a technical glitch. The Nasdaq also said late Thursday that it successfully shut down trading during the period of "extreme volatility" and that it was canceling the trades with the most severe fluctuations between the times of 2:40 p.m. and 3 p.m. ET.

Duncan Niederauer, Chief Executive of the New York Stock Exchange, told CNNMoney.com on Thursday that the volatility caused by big trades and thin volume.

"I think everyone's looking for the smoking gun, saying that traders made a mistake, who had a fat finger and sold something they didn't mean to sell," he said. "My view is that's not what happened."

"On a day like today, it might just take a few offers of people selling," he said, adding, "There was not a lot of volume on the way down, or, quite frankly, on the way up."

The Securities and Exchange Commission and the Commodity Futures Trading Commission released a joint statement on Thursday, saying they were "working closely with other financial regulators, as well as the exchanges, to review the unusual trading activity ... We are also working with the exchanges to take appropriate steps to protect investors pursuant to market rules."

Stock markets around the world retreated Friday as investors were jittery about the selloff on Wall Street. European markets dropped in morning trading and Asian shares finished steeply down. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.30%4.25%
15 yr fixed3.29%3.32%
5/1 ARM3.45%3.63%
30 yr refi4.27%4.20%
15 yr refi3.26%3.24%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,113.54 61.81 0.36%
Nasdaq 4,456.02 0.00 0.00%
S&P 500 1,983.53 9.90 0.50%
Treasuries 2.47 -0.01 -0.32%
Data as of 2:23am ET
Company Price Change % Change
Bank of America Corp... 15.52 0.00 0.00%
Apple Inc 94.72 0.78 0.83%
Microsoft Corp 44.83 -0.00 -0.01%
Intel Corp 34.79 0.73 2.14%
Facebook Inc 69.27 -0.13 -0.19%
Data as of Jul 22

Sections

Passion fruit, Mexican cinnamon and Ecuadorian cocoa. From coast to coast, entrepreneurs are brewing craft beers that incorporate Latin flavors. More

One recently retired airline worker on Obamacare said his tax credit for 2014 will return him $3,600 for the year, or 23% of his annual income. He's watching the dueling court rulings closely. More

Ladar Levison, the guy behind Lavabit, is launching Dark Mail to encrypt emails so the NSA doesn't even know who's talking. More

Passion fruit, Mexican cinnamon and Ecuadorian cocoa. From coast to coast, entrepreneurs are brewing craft beers that incorporate Latin flavors. More

Court documents show big support from Detroit employees and retirees for a turnaround plan that should help the city emerge quickly from bankruptcy. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.