By Maggie Fitzgerald
Free stock trading pioneer Robinhood is experiencing another major outage on Monday, keeping clients on the sidelines for a historic day for stocks.
“Trading is currently down on Robinhood and we’re investigating the issue,” the Silicon Valley start-up said on Monday shortly after the opening bell. “We are experiencing issues with equities, options and crypto trading. We are working to resolve this issue as soon as possible.”
Stocks cratered on Monday, as investors braced for the economic fallout from the coronavirus and a shocking all-out oil price war. The Dow Jones Industrial Average tanked 1,568 points, while the S&P 500 plunged 5.8%. The Nasdaq Composite fell 5.4%.
Robinhood’s outage comes after a week’s worth of technical problems starting on Monday, March 2, when clients missed out on the biggest one-day point gain in the Dow in history. The millennial favored app was plagued with glitches for two days, causing a wave of furious clients.
A Robinhood client based in Sarasota Florida, filed a federal lawsuit on behalf of himself and other traders Wednesday evening. Travis Taaffe alleges that Robinhood was negligent and breached its contract by failing to “provide a functioning platform,” leaving traders unable to move money while stock markets surged.