Berkshire Hathaway Stock Plummets 99.9% Due to NYSE Glitch

Berkshire stock NYSE:BRK.A

A technical malfunction on the New York Stock Exchange during Monday morning trading resulted in erroneous stock prices and volatility halts across several equities, most notably causing a staggering 99.9% drop in the price of Warren Buffett’s renowned Berkshire Hathaway (NYSE:BRK-A) A-shares.

While Berkshire Hathaway’s B-shares (NYSE:BRK-B), which trade at 1/1,500th the price of the A-shares, experienced a decline of up to 1.1% on Monday, they appeared to be largely unaffected by the glitch. Nevertheless, both A and B shares exhibited pronounced volatility as A-shares resumed trading around 11:35 a.m. Eastern Time.

According to a statement from the NYSE, the technical issue stemmed from industry-wide price bands published by the CTA SIP, triggering halts in trading for numerous stocks listed on the NYSE Group exchanges. The impacted stocks have since reopened or are in the process of reopening, with the issue resolved.

Price bands are implemented to mitigate excessive volatility or extreme fluctuations in individual stock prices. Despite the disruption, the NYSE assured investors that affected stocks are returning to normal trading conditions.

Chipotle (NYSE:CMG) stock was temporarily halted due to volatility approximately 14 minutes after the market opened, despite experiencing only a modest 1.2% decline. Additionally, trading halts were observed for Horace Mann Educators (NYSE:HMN) and Franco-Nevada Corp (NYSE:FNV), a company specializing in gold-focused royalty and streaming.

Monday’s technical glitch follows closely on the heels of another incident involving the temporary disappearance of live calculations for the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) for approximately an hour.

Just a week prior, the NYSE implemented a change to settle stocks within one business day in compliance with a new rule from the Securities and Exchange Commission. This adjustment reduced the time between trade and settlement from two days to one, aiming to streamline market operations.

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