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Predicting the Next Stock Market ‘Flash Crash’

Two engineers use fluid dynamics to study stock ‘flows’

Romesh Saigal
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Abdullah AlShelahi
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Wed, 07/03/2019 - 12:01
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Soon after the Great Recession, the U.S. stock markets plunged—and rebounded within 36 minutes. The Dow Jones Industrial Average dropped more than 9 percent, losing more than 1,000 points before suddenly recovering.

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This May 6, 2010, event was the first recorded “flash crash.” Although it didn’t have long-term effects, it raised concerns among investors about the stability of the stock market.

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