3 Things You Need to Know About Yesterday's Nasdaq Failurehttp://www.fool.com/investing/general/2013/08/23/3-things-you-need-to-know-about-yesterdays-nasdaq.aspx Alex Dumortier, CFA
August 23, 2013
Although we don't believe in timing the market or panicking over daily movements, we do like to keep an eye on market changes -- just in case they're material to our investing thesis.
U.S. stocks opened roughly unchanged this morning, with the S&P 500 (INDEX: ^GSPC) and the narrower, price-weighted Dow Jones Industrial Average (INDEX: ^DJI) down 0.11% and 0.19%, respectively, at 10:05 a.m. EDT.
All trading on the Nasdaq exchange ceased for three hours yesterday afternoon -- a disruption unusual for its breadth and duration. Here are three things you ought to know about what happened:
It could have been worse
It's certainly easy enough to imagine an uglier reaction; we were probably lucky the outage occurred in August, rather than October!
This type of failure will happen again