General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsThere's something perverse about Wall Street's reaction to the jobs report.
More people going back to work means the stock market drops. And all because of a teeny tiny interest rate hike that MAY happen. Wall Street is sick.
elleng
(130,902 posts)but hearing some analysis, it appears they're such chicken sh*ts they're afraid GOOD JOBS reports mean interest rate increases, about which they go NUTS!!! (and some of us lose on our not fancy or large investments.)
'report prompted a new round of optimism about the economys comeback from the recession along with fresh talk on Wall Street that the Federal Reserve might raise interest rates at its June meeting rather than wait until September.
The news led to a sharp rise on Friday in the yield on 10-year bonds and a substantial drop in the stock market, where investors feared that higher interest rates would make equities less attractive and chip away at corporate profits.'
http://www.nytimes.com/2015/03/07/business/economy/jobs-report-unemployment-february.html?ref=business
RandySF
(58,812 posts)More deals for me.
RKP5637
(67,108 posts)DCBob
(24,689 posts)since jobs and economy are improving significantly and higher interest rates translates into a stock market decline. Regardless its still perverse.
rgbecker
(4,831 posts)Everyday, someone is reporting the reason the market is doing this or that as if they had some idea what was going on. If you think investors are making decisions based on the day's news you should take a look instead at the day traders trying to guess about fluctuations unrelated to any particular day's news reports. On any particular day you could pick from among 10 stories that would sound like they would influence the market, half to move it up and half to move it down. But like anything of importance and that has attracted enough interest to afford a group of annalists you get a lot of bullshit thrown out as the gospel truth.
Sure there are days like 9/11 where even idiots can see the tea leaves' story, but in general, I think it's Monday night quarter backing for a public in need of a story and willing to pay for it.
indie9197
(509 posts)Plus, it is not "investors" that move the market. Private investors are an extremely small percentage of the trading volume in the stock market. The Wall Street firms churn the market up and down all day using trading algorithms and taking advantage of large spreads in the bid and ask prices. They are making huge amounts of money whether stocks go up or down.
applegrove
(118,653 posts)$$$$$$ off of lowered wages. Their has been an uncoupling of the 1% from the middle class after all.