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NYSE Resolves Bizarre Glitch That Sent Berkshire Hathaway Stock Down 99.97%

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NYSE Resolves Bizarre Glitch That Sent Berkshire Hathaway Stock Down 99.97%

A technical issue halted trading for several major stocks, including Berkshire Hathaway, which saw its value plummet by a staggering 99.97%. 

The New York Stock Exchange (NYSE) experienced a major disruption on Monday, leaving traders and investors bewildered. 

Fortunately, the NYSE has now resolved the issue, but questions remain about what caused the sudden market turmoil.

In an official update, the NYSE confirmed that impacted stocks have reopened, and “all systems are currently operational.

” However, the incident raised concerns among market participants, especially given the severity of the price swings.

Intercontinental Exchange (ICE), the parent company of NYSE, swiftly investigated the glitch. A senior executive at a major bank, in communication with ICE, stated that there is no evidence of a cyberattack. 

Instead, the NYSE attributed the disruption to a “technical issue” related to industry-wide price bands. These price bands triggered halts in trading for several stocks listed on the exchange.

Berkshire Hathaway Shocking Plunge

The Consolidated Tape Association’s (CTA) Security Information Processor (SIP) publishes these price bands. 

The CTA, an industry group responsible for real-time trade and quote data, plays a crucial role in maintaining market stability.

Dozens of stocks were temporarily paused during the day, indicating that they had traded outside the so-called limit up-limit down bands.

 Notably, this list included Chipotle and Berkshire Hathaway, the latter being the holding company led by legendary investor Warren Buffett.

For nearly two hours, Berkshire Hathaway’s Class A shares were listed at an astonishingly low price of $185.10—a value that would represent a catastrophic loss of 99.97%. 

Just days earlier, the same shares had closed at a much higher price of $627,400.

Nasdaq, another major stock exchange, clarified that the issue did not originate from its systems. Emily Pan, a Nasdaq spokesperson, confirmed this to CNN.

Other Affected Stocks

However, market experts remain skeptical. Joe Saluzzi, co-founder of Themis Trading and author of “Broken Markets,” expressed doubts about the NYSE’s explanation.

 “I’m not buying that,” Saluzzi said. “It doesn’t make any sense to me.” He pointed out that the sudden drop in Berkshire Hathaway’s stock lacked the gradual decline typically associated with market corrections.

Trading data from Refinitiv revealed that Berkshire Hathaway’s shares had been trading at $620,700 at 9:44:32 on Monday morning. Abruptly, without any clear reason, the stock crashed to just $185.10.

Saluzzi expects that the erroneous trades will be canceled by the NYSE shortly, but the incident has left investors on edge.

Remarkably, the broader stock market remained largely unaffected by the technical glitch. Most other halted stocks and exchange-traded funds (ETFs) experienced only minor fluctuations.

One notable exception was Barrick Gold (GOLD), a Canadian gold and copper producer.

 At one point, it was displayed as trading at a mere 25 cents—a staggering 98.5% decline for the day. 

However, by midday, Barrick had recovered to a more reasonable level, trading at $17.28, up 1.1%.

Similarly, NuScale Power (SMR), a company specializing in modular nuclear reactor technology, briefly plummeted to just 13 cents—a 98.5% drop. After reopening, it stabilized at $8.29, down only 5%.

As the NYSE investigates further, investors hope for clarity and reassurance that such incidents won’t recur.

 For now, the markets remain vigilant, aware that even the most advanced systems can encounter unexpected hiccups.

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