Volatile Day For The Dow
Just when you think you’ve seen everything, you come across a day like this. The stock market took a major league tumble, then found a way to right itself. At one point during the day the Dow was down more than 900 points, before rallying to end the day down a little more than 300 points.
Even though it was initially estimated that the problem was worry about the situation in Europe, where Spain suddenly seemed to be in the same position as Greece was last week in needing emergency money, it’s now being speculated that there might have been a glitch in the computer system that helped cause the dramatic downturn.
Either way, it had people scurrying around with their heads cut off, or at least looking like they did, as everyone tried to figure out what was going on. When something is coming across email with breaking news that looks like someone’s announcing that the world has come to an end, it’s dramatic to say the least.
By the end of the day the Dow was sitting at 10520.32, a reduction of -347.8 points, or a -3.20% decrease on the day. They’ll take that because there had been a drop of 600 points in the course of 7 minutes which is what got everyone up in arms before the rally. As a matter of fact, after all the markets had closed, the NASDAQ decided that they were invalidating any trades that occurred between 2:40 and 3PM, saying there had to be an obvious glitch. That left the NASDAQ down 3.4% on the day, and Standard and Poor also took a hit, falling 3.2% on the day.
If it turns out that it was some sort of computer glitch, it’s going to set a scary precedent that might remind some people of the movie Die Hard With A Vengeance, since the premise of that movie was the ability of one man to crack all the country’s most secure computer systems at once. We’re starting to see just how reliant this country is on its technology, and who’s to say that it won’t be a target of terrorists one of these days.
It should be interesting to see how the markets close tomorrow, especially after the elections in the United Kingdom, which didn’t produce an outright winner and thus leaves their financial markets still in disarray. It’s looking a lot like that 8-week streak of gains by the Dow will be over.