Recapping the day's news and newsmakers through the lens of CNBC.
The 'Flash Freeze'
Amazon crashes. Mark Zuckerberg's Facebook account is hacked. Goldman Sachs botches a hundred million or so in options action. And now, in a much more critical market context, there's the Nasdaq "Flash Freeze."
From the Facebook IPO debacle to today's trading halt, the Nasdaq has figured prominently in what many market experts worry is a growing list of reasons for investors to lose faith in the markets. And from the Flash Crash to BATS Global Markets' IPO problems and the growth of high-frequency trading in general, "Whoops ... again" and "Rise of the machines" panic, have become all too common refrains among ordinary investors.
Nasdaq halted all trading—and the NYSE halted all trading in Nasdaq securities—just after noon today because of a problem in sending out quotes, and didn't resume trading until 3:25 p.m., at which point, things seemed to be back to "normal." Some market experts think the panicked reaction could be short-lived, and the "Flash Freeze" become a minor footnote in market history.
"I've never seen anything like this in my life. It's horrible."
—Dave Rovelli, managing director of U.S. equity trading at Canaccord Genuity
"On half the trading desks on the Street you wouldn't even know the Nasdaq had been halted."
—Dave Lutz, managing director of trading at Stifel Nicolaus