Fake Tweet Sends the Dow Plunging

The Associated Press's Twitter account was hacked today, sending markets plunging for about a minute.

The Twitter account has since been suspended, but Grace Wyler of Business Insider captured the fake news:

You can see what this did to the Dow Jones (DJINDICES: ^DJI  ) :

The White House confirmed that everything is fine.

Go back to your day. Ignore the news


Read/Post Comments (20) | Recommend This Article (35)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 23, 2013, at 2:00 PM, outoffocus wrote:

    Flash crash 2.0

  • Report this Comment On April 23, 2013, at 5:53 PM, igotchucked wrote:

    charles schwab got hit to..

  • Report this Comment On April 23, 2013, at 5:54 PM, igotchucked wrote:

    charles schwab also

  • Report this Comment On April 23, 2013, at 6:01 PM, dgmennie wrote:

    Can anyone now believe the "value" cited for the stock market is anchored in anything but quicksand? Today's plunge (even though relatively brief) must be intimately bound to the 70%+ of programmed trading that now determines what your investments might be worth.

    Time for some hard-core nail-biting, then some serious reform before the whole equity mess blows up for good. Otherwise NOBODY is going to be able to retire.

  • Report this Comment On April 23, 2013, at 6:17 PM, TMFMorgan wrote:

    dgmennie,

    To be fair, it's been like this for decades. The market plunged after Kennedy was assassinated.

  • Report this Comment On April 23, 2013, at 6:30 PM, kbeck02 wrote:

    Yes, but John Kennedy was actually assassinated.

    That was a real event. Not some hacker playing games.

    Do you not see the difference?

  • Report this Comment On April 23, 2013, at 6:33 PM, TMFMorgan wrote:

    <<Do you not see the difference?>>

    The AP is probably the most credible news organization on the planet. Those who saw that Tweet had no reason to suspect it was a hacker playing games.

  • Report this Comment On April 23, 2013, at 6:34 PM, TMFMorgan wrote:

    In fact, when there's breaking news, many wait before it's "confirmed" by the AP before declaring it real.

  • Report this Comment On April 23, 2013, at 7:07 PM, rawbourbon wrote:

    The way the market reacts over seconds, minutes and days is completely ridiculous! If you own a private business and people shouted at you all day what your share is worth, you would quickly learn to ignore them and just go about your business. On occasion, they would shout purely insane valuations and you might just take ADVANTAGE of them. Bottom line: forget the market and buy businesses and hold them like you would hold a private business.

  • Report this Comment On April 23, 2013, at 7:08 PM, MUGSVT98 wrote:

    I've read comments that people have posted on other sites which have dismissed the 1% drop that resulted from the news. A 1% drop that occurs so suddenly is kind of a big deal and, yes, we might have expected this to happen if the news was real or fake.

    What caught my attention was how quickly the market reacted. Not a gentle, or even steep descent, but an all-out nose dive!

    There are trading programs out there that use algorythms to read news and make complicated calculations based on what is gathered through mass, open-source reporting (among other things). These calculations and trades occur so rapidly, and so autonomously, I can't help but see this event not as simply a successful hack, but a proof of concept for a would-be financial terrorist. Could the combination of mis-information and a violent drop in market value, thankfully brief, be considered a "W" fora state or non-state sponsored organization?

    I mention this solely for discussion purposes and base my thinking on a volume published by two PLA Colonels called "Unrestricted Warfare". I am in no way saying that China had any role in this; rather that the events of today represent exactly some of the principles in this publiction (PDF is free online).

    Query your collective thoughts...

  • Report this Comment On April 23, 2013, at 8:02 PM, herzele wrote:

    The automatic trading should NOT be allowed. Too let a Computer bring down the entire market is criminal, and those that support it should be blac balled !!

  • Report this Comment On April 23, 2013, at 9:22 PM, TradewindRider wrote:

    Except that the market was NOT "brought down". It was subject to some panic selling, perhaps largely due to snowballing auto trading. My guess is that the buyers during those few minutes are very happy today.

  • Report this Comment On April 23, 2013, at 9:33 PM, rftwpuma wrote:

    Were any "stops" activated by this drop?

  • Report this Comment On April 24, 2013, at 5:19 AM, Stuartrudd wrote:

    Time to buy shares in the company that can prevent these hacks......

  • Report this Comment On April 24, 2013, at 6:25 AM, defridgerator wrote:

    @Stuartrudd - No software however complex is hack-proof. No such company exists.

  • Report this Comment On April 24, 2013, at 6:53 AM, TMFSpiffyPop wrote:

    Big Dumb Money.

  • Report this Comment On April 24, 2013, at 9:29 AM, jvgfool wrote:

    I wonder how much they lost by knee-jerk selling.

  • Report this Comment On April 24, 2013, at 11:20 AM, slrutledge wrote:

    Perhaps we should investigate those who bought during those few minutes. Likely one of those "very happy" people is responsible.

  • Report this Comment On April 24, 2013, at 5:08 PM, SkepikI wrote:

    Morgan: However could you resist the temptation to use this as exhibit A for "buy and hold"? Knowing your character as an investor, having the courage to be patient, and knowing why you invest would avoid this kind of behavior (for individuals). Mess that up, any of it and you will be subject to this kind of whim, and sure to panic stricken sell at exactly the wrong time. BDM, TMFSpiffyPop has it pegged.

  • Report this Comment On April 25, 2013, at 1:01 PM, mikecart1 wrote:

    What the fake tweeter failed to do is realize that all news outlets refer to this country's leader as President Obama, not Barack Obama.

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2380430, ~/Articles/ArticleHandler.aspx, 10/23/2014 5:25:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement