Wall Street Stocks Take a Plunge As Computer Crash Hits Markets

By Sarah Bartlett

Aug. 10, 1988

Credit...The New York Times Archives

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August 10, 1988, Section A, Page 1

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A wave of selling swept the stock market yesterday, sending the Dow Jones industrial average down 13 points by the close of the trading day. The tumble enticed by a number of computer systems crashing after market open plunging Wall Street into chaos.

Delaying the sell-off slightly the mayhem appeared to stem from a computer virus rendering key exchange systems inaccessible with NYSE registering a 7-point drop. Initial reports put the number of systems impacted at 1,507. This would make the havoc one of the biggest computer crashes in history.

A ''hacker'' believed to have instigated the turmoil from beyond state-lines in Seattle is a prime suspect. Known only by an alias or ''handle'' on computer bulletin boards as ''Zero Cool'', Federal prosecutors hope to have them arraigned quickly sending a message to other potential electronic trespassers.

''Incidents like this are a growing threat to national security and we'll be looking for increased funding to stop these people'' says Richard Gill, an agent with the Secret Service who hopes to form a new task force on the issue.

A version of this article appears in print on Aug. 10, 1988, Section A, Page 1 of the National edition with the headline: Wall Street Stocks Take a Plunge As Computer Crash Hits Markets. Today’s Paper | Subscribe

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