What is the driver for the recent fall on the stockmarket (employment, wage) - Politics and Other Controversies -Democrats, Republicans, Libertarians, Conservatives, Liberals, Third Parties, Left-Wing, Right-Wing, Congress, President - City-Data Forum

BentBow · 10-09-2014, 09:50 AM

What's the driver for the falling number?

It has been down all week. 200 points right now.

Who keeps up with this, to explain the mechanism.

BentBow · 10-09-2014, 10:31 AM

Down 300 now???

Hmmm? The financial stations are not talking about it much, like it was a correction to be expected.

legalsea · 10-09-2014, 10:40 AM

Who knows? Down some 272 points Tuesday, recaptured all plus a point or two yesterday, now down big time today.

I will only point out that October has, historically, been a bad month for the stockmarket.

I have read some that the 'computerization' is also frequently involved: i.e., investment banks, etc., have programs that will automatically 'sell' if the Dow Jones drops a certain percentage (built in herd-mentality). Of course, back at the beginning of The Great Depression there were no computers, just human beings on the exchange floor engaging in panic selling.

As Paul Harvey used to say about such swings: It is only those that jump off the roller coaster that get hurt.

HappyTexan · 10-09-2014, 10:48 AM

Lots of things. But in a nutshell the recovery really wasn't a recovery.

aplcr0331 · 10-09-2014, 10:52 AM

Didn't it spike on the release of the employment numbers? Perhaps this is a correction?

HappyTexan · 10-09-2014, 10:55 AM

Quote:

Originally Posted by aplcr0331

Didn't it spike on the release of the employment numbers? Perhaps this is a correction?

No..it's global conditions that aren't that great.
A blip in US low wage employment isn't enough to power the stock market.

Mathguy · 10-09-2014, 10:58 AM

300pts is less than 2%.

Back in the day 300pts was a huge deal, now not so much.

Since all stock prices are predicated upon future earnings relative to other opportunities the main drivers would be federal interest rates and anything that can impact future anticipated earnings for companies.

Don't lose to much sleep over it.

HappyTexan · 10-09-2014, 10:58 AM

Both the IMF and the Fed are voicing "concerns" about the economies of the world and have been for some time.
The US just tightened that loophole that will hurt multinationals and their foreign money.

Market Focus: Storm Watch | FINANCIAL SENSE

Casper in Dallas · 10-09-2014, 11:24 AM

Or:
The Market goes Up and the Market goes down.
Clue to the wall street geniuses here:
You buy when it is down
You sell when it is up

Opin_Yunated · 10-09-2014, 11:26 AM

Obama.

Seriously... who cares? It is the market. It goes up and down. It is speculation.