Siheyuan: There are seven fairies in my house, I am so busy

As the stock market and futures market drive each other, stock prices and futures indexes fall faster and faster, and trading volume surges.

从11：00到11：50股市成交9300万股，中午期指交易量相当于700万股，而股市是900万股。

Large institutions trading massive amounts in both markets brought the disaster to a head.

The New York Stock Exchange's computer system was almost paralyzed that day.

The New York Stock Exchange had a total of 200 microcomputers, and the system had never been able to handle such a large number of transactions.

When stock trading data poured into computers, they could barely handle it.

When sell orders came in overwhelmingly, the information system's processing speed lagged far behind.

Less than an hour after the market opened, due to the large number of sell orders, the computer was 20 minutes slower than the actual trading speed; at noon, the designated instruction conversion system (DOT) in the computer system was slow by about 75 minutes.

Due to insufficient capacity of the DOT system, 3.96 million of the 1.2 million shares of transactions transmitted to the DOT system were not executed.

At 13:09 p.m., a terrible news reached the Wall Street stock market.

"At a critical juncture, and we don't know when that critical juncture will be, I will discuss with the stock exchanges the possibility of temporarily shutting down the exchanges," David Rudd, chairman of the U.S. Securities and Exchange Commission, said in a speech in Washington.

This news caused even more panic, because if the exchange was closed, traders would not have time to sell their stocks, their stocks would become worthless, and thousands of dollars would be reduced to ashes.

As a result, traders were forced to "dump stocks" quickly, and the Dow Jones Industrial Average plummeted like a possessed person.

By 250 p.m., the market had fallen 4 points, more than 100 million shares had changed hands, and the computer was minutes behind the actual trading speed.

In the meantime, SEC officials came out to clarify that they were not discussing closing the exchange.

However, it was too late and the disaster could not be stopped.

At 14:05 in the afternoon, the Dow Jones Industrial Average rose 350 points and successfully broke through 2000 points. However, this rebound only lasted for a moment, and the reaction of the futures market was basically the same.

Around 14:30, the stock price trend seemed to be improving, but then the rebound was blocked and a new round of downward trend was formed.

At this time, there was only more than an hour left until closing, but in this short yet long hour, the Dow Jones Industrial Average fell another 250 points in this seemingly solidified air, with 2 million shares changing hands.

The plunge was forced to stop only when the market closed at 16: in the afternoon.

At the last hour, Zhang Jialiang decided to sell his short positions and take over the selling orders in the stock market.

"Wang Fayi, start taking action, sell all the short orders you have, and start accepting other people's selling orders!"

Wang Fayi:

"Okay Zhang Sheng, take action immediately!"

Because the computer system was too busy, the transaction process was significantly delayed, resulting in Wang Fayi placing a short order but the transaction was not fully completed.

Zhang Jialiang also knew about this situation, but there was no need to be nervous. Although the delivery was not completed today, the short order was already there, and the transaction would naturally be completed after the market opened the next day.

Today's traders are already frightened birds, and Zhang Jialiang's takeover is a life-saving straw for them, so it will not pose too much of an obstacle.

After the market closed, Wang Fayi came to Zhang Jialiang.

"Mr. Zhang, all the short orders have been posted, but only about half of the transactions have been completed, and the other half of the short orders have not been settled."

Zhang Jialiang:

"I understand. Just wait until tomorrow to continue the transaction."

Although Zhang Jialiang and Wang Fayi have not yet completed some transactions, it is foreseeable that this action will reap rich rewards, so they are naturally very excited.

But the situation for others in the stock market was completely the opposite. At the close of the day, the Dow Jones Industrial Average fell 508.32 points, from 2246.72 points to 1738.470 points, a drop of 22.6%, setting a record for the largest single-day drop.

The face value of the stock, $5030 billion, equivalent to France's annual GDP, was wiped out in one day.

On that day, of the 1600 stocks listed on the New York Stock Exchange, only 52 stocks rose, and the rest all fell.

Among them, 1192 stocks fell to their lowest level in 52 weeks, and many representative blue-chip stocks were also doomed.

The stocks of almost all major companies plummeted by about 30%, such as General Electric fell 33.1%, AT&T fell 29.5%, Coca-Cola fell 36.5%, Westinghouse fell 45.8%, American Express fell 38.8%, and Boeing fell 29.9%.

The stocks of these big companies also made Zhang Jialiang a fortune. Their decline exceeded the decline of the stock index, and he gained more wealth from these big companies.

On this day, the New York Stock Exchange was shrouded in dark clouds and the atmosphere was extremely tense. Prices changed extremely quickly, there were not enough telephones, and the prices on the fluorescent screens could not keep up with the actual market prices.

Afterwards one trader said that his screen showed the Dow Jones Industrial Average down 3.78 points, when in reality it was down 508 points.

The daily trading volume is usually around 1 million shares, but on this day it was 6 million shares. Due to the lag in computer system operation, about 28% of the orders were not executed, including 9200 million limit orders.

Many investors, especially small and medium-sized investors, did not know that their stocks were not sold until two or three days later.

In addition, the U.S. government bond market is also in chaos due to changes in stock prices.

Due to the influence of computers, news agencies reported the closing price of the stock market five and a half hours after the closing.

“Everything was out of control,” reported The New York Times.

Countless investors suffered heavy losses on that day. The world's richest man Sam Walton lost $21 billion in stock value in one day, the world's youngest billionaire Bill Gates lost $39.45 billion, and computer tycoon Wang An lost $19 million in the afternoon of the 3100th alone.

Many millionaires became paupers overnight, and the ones who suffered the most were those investors who invested their hard-earned money in stocks over the years.

Shocked by the stock price plunge, investors' psychology became extremely fragile. Many people who could not bear the heavy debt burden caused by the stock market crash suffered a complete mental breakdown. News of suicides were heard everywhere. Banks went bankrupt, factories closed, companies laid off a large number of employees, and people were in panic.

The development of information technology has linked financial transactions around the world together, but the accelerated pace of financial integration has also caused some negative effects.

Due to the development of global financial integration, when a stock market crashes, other stock markets will inevitably be affected.

On "Black Monday," stock prices plummeted even as the opening bell of the Tokyo Stock Exchange rang.

The Nikkei 225 index fell 620 points, or 14.9%;

Hong Kong's Hang Seng Index fell 421 points, or 11.3%, also setting a record for the largest one-day drop;

Singapore's Straits Times Index fell 169 points, or 12.4%;

The Australian All Ordinaries index fell 80 points, or 3.7 per cent;

The FTSE 30 index fell 183.7 points, or 10.1%, and the FTSE 100 index fell 249.6 points to 2053.3, with investors losing £500 billion.

In addition, stock markets in Paris, Frankfurt, Stockholm, Milan, Amsterdam and other cities all fell by varying degrees ranging from 6% to 11%, creating a stock market shock wave around the world.