So… what happened to the U.S. stock market? Was it:
- the sermon to the U.S. Congress by Pope Francis,
- the resignation of John Boehner as Speaker of the House of Representatives,
- the on-going immigration crisis in the Euro zone countries,
- the visit to President Obama by China’s President Xi,
- the drug company who bought a decades-old generic drug with the intention of inflating its price 5,000%,
- the FOMC (Federal Open Markets Committee) not raising interest rates (federal funds rate),
- more companies laying off hundreds of workers?
- the crude oil market bubble bursting
- Perhaps it’s the “guillotine” aura of the U.S. Government shutting down AGAIN on September 30, 2015, because of elected officials’ dysfunction and mismanagement.
I won’t comment or opine on any of the above events (well I did a little at the end), there are plenty of others doing it much better than I. Coverage of Pope Francis and China’s president have been all over the news networks and the ‘net. But I will include a link to the drug price “shocker” because it has raised the issue of “outrageous drug prices” in general to the “front page” at least for a little while. Here’s the skinny*:
The outrageous price increase: Turing Pharmaceuticals http://www.nytimes.com/2015/09/21/business/a-huge-overnight-increase-in-a-drugs-price-raises-protests.html?_r=0
However, I’m calling attention to a stock market (which incidentally supposedly looks six months forward in its activity) which reacts quite violently these days to daily news and events, thanks to program trading and algorithms. Below are various articles and/or opinions that are discussing this “increased” volatility, and perhaps some reasons for it, as well as the increasingly “fragile-appearing” economy the U.S. is experiencing. Heck, who needs to go to Vegas!
Author’s Addeneum 10/1/2015: Here’s a Wall Street Journal article featuring the New York Federal Reserve president, William Dudley. Article is updated as of September 28, 2015. Article discusses possibility of the Federal Reserve Bank finally raising its short-term interest rates.