The stock market has dropped 250 points so far today, and traders are mystified as to why.
A broad sell-off sent the Dow Jones industrial average more than 290 points in afternoon trading, hours after the government reported that the number of Americans filing for unemployment benefits unexpectedly rose last week.
But the sharpest declines came nearly two hours after that report was released, a lag that rarely occurs in today’s overheated financial world. The other financial news of the day, including a $2.50 drop in the price of oil, would usually cheer investors. So what gives?
Could it be that enough of them were spooked by the prospect of Vice President Sarah Palin? If this is another example of a Palin bounce it is of the dead cat variety, 'dead cat bounce' being the term traders use for a momentary uptick of false enthusiasm before the market plunges even further into the red.