Nasdaq test data glitch set tech stock prices to $123.47

Lena Tucker
July 5, 2017

Amazon shares were shown to drop from nearly $950 (£735), a loss of 87 per cent, while Google owner Alphabet's fell by 86 per cent. For Zynga, the ailing Facebook game maker that was once on the roll, the glitch gave the impression that it's once again successful.

Testing of stock exchange software is mandated by the U.S. Securities and Exchange Commission and happens on a regular basis to help prevent electronic glitches.

Share prices for Amazon, Alphabet, Apple, and Microsoft are all being returned as $123.47. "Nasdaq is working with third-party vendors to resolve the matter", a Nasdaq spokesperson was quoted as saying by MarketWatch.

Yahoo Finance and Bloomberg appeared to be showing correct ticker data as of 11 p.m. ET, but Google Finance was still showing the test data.

The error, thought to have started when financial information providers wrongly interpreted a data test of some kind as real-time stock prices, caused an intense moment of utter pandemonium on trading floors. In contrast, Mircrosoft Corporation (NASDAQ:MSFT) soared 80%, giving the company a valuation of more than US$1trn. Such mistakes would have a greater impact when the market is open.

Luckily, no trades took place at the dramatically lower (or higher) price points, and the Nasdaq reported that "it was no error" on its part.

The Nasdaq is the stock exchange for most of the world's biggest technology companies, trading out of NY, and a longer glitch could have been disastrous.

A Nasdaq spokesman told CNBC that the glitch came about after some test results were wrongly distributed to the third party finance sites.

Other reports by AllAboutTopnews

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