What made the stock market go down 500 pts. back around February or March technically and financially?
Answers:
Economically speaking, that morning, Asian markets were trading much lower (China was off around 9%), which led to worries in America about the global economy. We were starting to feel the brunt of the sub-prime mortgage declines, also.
Technically, the computers at Dow Jones, who keeps track of the Dow Jones Industrial average, became backed up due to an overload of information. Eventually, the computer system corrected itself, and when it did, the Dow dropped around 200 points in a matter of seconds, as all the backed up information finally came through. This, obviously, caused some trepidation for traders on the floor.
China.
Sort of a panic attack. The market is mostly psychological. When the herd starts to stampede it is hard to stop.
Asian Markets took a much needed breather and we followed
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