Trading at the New York Stock Exchange came to a standstill on Wednesday for nearly four hours because of a technical glitch. It resumed just after 3 p.m. Eastern, with about an hour left in the trading day. This was just one of several issues in the financial markets around the globe.
The technical glitch that paralyzed the NYSE was unusual, according to finance professor Mac Clouse, with DU Daniels College of Business.
“There may have been glitches that have stopped things for a little while – [but] not this long and not the whole market,” he said of previous stock exchange glitches.
The stoppage was blamed on an internal glitch NYSE, which U.S. Homeland Security Secretary Jeh Johnson addressed Wednesday afternoon, along with glitches today at United Airlines and the Wall Street Journal’s website.
“It appears from what we know at this stage that the malfunctions at United and the Stock Exchange were not the results of any nefarious actor,” Homeland Security Secretary Johnson said. “We know less about the Wall Street Journal at this point, except that they system is back up again as is the United Airlines system.”
The New York Stock Exchange is one of ten stock exchanges around the country. The others function mostly electronically, which makes New York’s so-called “Big Board” physical location the most high-profile.
“So, the New York Stock exchange is the one that’s the most visual and that’s the one that’s really in the minds of the public,” Clouse said.
Clouse said the technical glitch did little to calm investors, who were already jittery about the Greek financial debt crisis and China’s overnight meltdown of its stock markets, which the Chinese government is keeping afloat by buying stocks.
“When people panic about money, it’s a pretty serious panic because money is pretty close to home,” Clouse said. “The advice we give during situations like these is “Don’t Panic.” You’re investing for the long-term and don’t worry about something that happens in one particular day.”
As for what might happen in the financial markets on Thursday, Clouse said as long as there are no new issues coming out of the markets, either here or abroad, he believes investors will start buying again.