Technical Issues Shake Major Investment Platforms Amid Market Turmoil

Charles Schwab and Fidelity Investments resolved app issues as markets plunged due to recession fears. Users faced login difficulties, leading to panic. The SEC monitored the disruptions. Other brokerages like Robinhood and Vanguard also experienced outages. Interactive Brokers remained unaffected, highlighting technical challenges during high market volatility.

Charles Schwab and Fidelity Investments have resolved technical issues with their apps as markets slumped on Monday amid rising fears of a U.S. recession, according to the online brokerages.

Initial login problems for some users compounded the market panic, as Wall Street's main indexes plunged at the open with weak economic data, disappointing earnings from technology giants, and geopolitical tensions fueling fears of a hard landing. The Cboe volatility index, Wall Street's fear gauge, hit a two-year high before recouping some losses.

Jason Britton, president of Reflection Asset Management, noted that outages on trading platforms can cause significant distress among investors. Social media complaints surged as users announced intentions to seek alternatives. The SEC is monitoring the outages closely, a spokesperson confirmed to Reuters. At peak, Schwab's outages affected nearly 14,500 users, and over 3,600 users reported issues with Fidelity, per Downdetector.com.

(With inputs from agencies.)