- Around 60 stocks were impacted by the technical issue
- Some listed prices plummeted by 99 percent while others had minor drops
The New York Stock Exchange is urgently investigating a ‘technical issue’ that has caused dozens of billion dollar stocks to list at up to 99 percent price losses.
Stocks listed on the NYSE, such as Berkshire Hathaway, GameStop, Chipotle Mexican Grill and Barrick Gold, were halted for volatility on Monday morning.
Berkshire shares were shown to be down 99.97% – with their Class A stock listed as trading at just $185.10.
There were less than 4,000 recorded trades for Berkshire’s A-class shares before trading was halted.
Likewise Barrick Gold was displayed as trading at just 25 cents – down 98.5 percent on the day.
Stocks listed on the NYSE, such as Berkshire Hathaway, GameStop, Chipotle Mexican Grill and Barrick Gold, were halted for volatility on Monday morning
Berkshire shares were shown to be down 99.97% – with their Class A stock listed as trading at just $185.10
And NuScale Power was listed at 13 cents, down 98.5 percent on the day.
Around 60 stocks were affected according to the NYSE website, with some only reporting minor price changes.
NYSE Equities said on Monday it was currently investigating a reported technical issue regarding Limit Up-Limit Down bands, sending dozens of stocks listed on the exchange into volatility pauses.
The LULD mechanism is meant to prevent extraordinary market volatility and extreme price movements in individual securities.
It prevents trading from occurring outside of specific price bands that are continuously updated throughout the trading day.
The bands are set at a percentage level above and below the average reference price of the security over the immediately preceding five-minute period.
Joe Saluzzi, co-founder of Themis Trading, told CNN: ‘Berkshire, Chipotle and a few others were halted for no apparent reason. Something wacky is happening.’
He added: ‘It’s erroneous trade reports and will get taken from the tape.
‘It’s somebody having a glitch whether its the exchange or a market maker.’
The first stock to be placed under a LULD pause, according to the NYSE website, was GameStop. GameStop shares soared on Monday after Keith Gill, the man who inspired the 2021 year’s short squeeze, resurfaced Sunday on Reddit (post pictured)
Keith Gill, the man who inspired that year’s short squeeze and is also known by his online pseudonym Roaring Kitty, resurfaced Sunday after three years, posting a screenshot of what could be his portfolio in the process. He is seen here back in 2021
The first stock to be placed under a LULD pause, according to the NYSE website, was GameStop.
GameStop’s shares surged this morning after Keith Gill, the man who inspired the 2021 year’s short squeeze, resurfaced Sunday on Reddit.
Gill posted a screenshot showing a $116 million position in GameStop stock, plus a big bet the share price will go up.
When pre-market trading opening this morning, the share price jumped as much as 80 percent to more than $40 a share. On Friday, it closed at $23.14.
It was a throwback to 2021 when GameStop hit the headlines for a ‘short squeeze’ on its stock. Back then, it was a video game retailer struggling to survive as consumers switched rapidly from discs to digital downloads.
Big Wall Street hedge funds were betting against it, or shorting its stock – expecting it to go bankrupt. But Gill and his fans disagreed and bought up millions of GameStop shares.