Fidelity Outage Freezes Traders Out of Market Rally

• The S&P 500 index (^GSPC) surged over 2.5% by 10:30 a.m. ET Monday, fueled by a breakthrough in U.S.-China trade talks. However, Fidelity’s trading platforms – including online, mobile, and Active Trader apps – experienced outages, leaving users unable to execute trades.
• Thousands of Fidelity customers reported inability to access accounts or execute trades, as confirmed by Down Detector, with high trading volume—the highest for that time of day in May.
• Fidelity responded on X, apologizing and stating they are “working urgently” to resolve the issue, amid a market rally that highlighted the critical timing of the outage for investors seeking to capitalize on trade-driven gains.

The U.S. stock market opened with a surge of optimism on Monday, propelled by a breakthrough in U.S.-China trade negotiations over the weekend, but a widespread outage at Fidelity’s trading platforms left many investors sidelined, unable to capitalize on the rally. The Standard & Poor’s 500 index (^GSPC) climbed more than 2.5% by 10:30 a.m. ET, reflecting robust market enthusiasm following the trade talk progress, which included a 90-day tariff reduction agreement. However, Fidelity’s online, mobile, and Active Trader apps experienced significant disruptions, preventing thousands of users from executing buy or sell orders, as reported by outage tracking website Down Detector.

Fidelity addressed the issue in an X post, stating, “We are aware that some customers are experiencing issues with Fidelity.com, Active Trader Pro (ATP), and our mobile apps.” The company apologized for the inconvenience and expressed appreciation for its customers while working toward a resolution.

We are aware that some customers are experiencing issues with https://t.co/turmsHS3YJ, Active Trader Pro (ATP), and our mobile apps. We are working urgently on resolving the issues. We apologize for the inconvenience and appreciate you being a customer.

— Fidelity Investments (@Fidelity) May 12, 2025

The timing of the outage was particularly inopportune, as the market’s sharp upward movement offered significant opportunities for traders, especially in sectors sensitive to trade developments, such as technology and retail. The inability to access accounts or place trades likely cost some investors potential gains, particularly as the S&P 500’s rally signaled broad-based strength across major equities. Social media platforms echoed user discontent, with reports of login failures and stalled transactions fueling criticism of Fidelity’s reliability during critical market moments.

Such outages are not unprecedented in the brokerage industry, with similar disruptions reported by Fidelity and competitors like Charles Schwab and Vanguard during high-volatility periods, such as the market sell-off on August 5, 2024. These incidents highlight the challenges of maintaining robust digital infrastructure amid surging trading volumes, particularly during unexpected market catalysts like the U.S.-China trade breakthrough. The high trading volume, as Sosnick observed, likely strained Fidelity’s systems, revealing vulnerabilities in handling peak demand. For retail investors, who increasingly rely on seamless access to mobile and online platforms, the outage underscores the risks of technical failures during pivotal market sessions. While Fidelity’s swift acknowledgment and commitment to resolving the issue offer some reassurance, the incident may prompt scrutiny of its operational resilience and could influence customer trust, especially as competitors race to enhance their technological capabilities in a rapidly evolving financial landscape.

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