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, Think Finance (774 clicks)
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Perhaps you're looking around for what made the market crash 1% in seconds. Look no further. What happened is that Fox's twitter feed was hacked. The hacker, using his command of Fox News tweet feed, then issued the following tweet:

So there you have it. Obama was assassinated with two shots. The market reaction was massive, one still wonders if it were machines doing the selling, or flesh and blood humans. Among other assets, there was an impact on S&P futures, Crude, USD/JPY, you name it. The moves were real and tradable. I reproduce a few of these moves below.

S&P futures (NYSEARCA:SPY)

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Financials (NYSEARCA:XLF)

(click to enlarge)

Crude futures (NYSEARCA:USO)

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USD/JPY

(click to enlarge)

This really calls into question Twitter's safety, as well as the safety of having machines scouring the internet for breaking news.

It's hard to say whether this was a buying opportunity except for the very short term, though. Apple (NASDAQ:AAPL) reports after the close and there's a good likelihood that guidance will come in below what consensus discounts for next quarter, given that there are no new products and the majors - the iPhone, iPad -- are likely to suffer significantly quarter-on-quarter.

Conclusion

The flash crash which took place today was brought about because of an hacked twitter account saying Obama was dead. How unreal is that?

Source: 'Obama Is Dead' Tweet Makes For Flash Crash