This Monday morning (3), a technical failure on the New York Stock Exchange (NYSE) caused panic among investors. That’s because the failure showed an abrupt collapse in Berkshire Hathaway shares.

The failure saw shares fall by 99%. The error, which lasted approximately three hours, made it appear that the shares of Warren Buffett’s company were in free fall. This generated a wave of confusion and concern in the market.

Berkshire Hathaway shares appeared with drastically reduced values. This failure resulted in a series of automatic sell orders and hasty investor reactions.

In addition to Hathaway, the shares of Chipotle Mexican Grill and Abbott Laboratories also suffered an impact, in addition to odd negotiations in at least two shares at the beginning of trading this Monday.

NuScale Power Corporation, a publicly traded company that designs and markets small modular reactors, had a similar failure, trading at about 99% below its previous price.

In response, the NYSE quickly halted trading. In addition, an investigation was launched to identify the cause of the technical problem.

The NYSE issued an official statement, stating that it had identified and fixed the flaw. It also said it will implement additional measures to prevent future similar incidents.

Berkshire Hathaway also spoke out, assuring investors that the company’s fundamentals remain solid and that the share price displayed during the error does not reflect the company’s financial reality.

Financial market analysts point out that, despite the initial panic, the recovery in Berkshire Hathaway shares should be quick, as confidence in Warren Buffett’s company remains high. This was not the first incident of NYSE failure. Recently, an error left the S&P 500 index without live prices for an hour.

“A little strange, but almost certainly a coincidence,” Steve Sosnick, chief strategist at Interactive Brokers LLC, said of the NYSE issuance following last week’s S&P 500 index crash.


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