Does One Word From Greenspan Really Matter?
How can one person control the fate of the stock market? If you're Alan Greenspan, sometimes a word or two, or even perhaps a nod can speak volumes.
Such was the case on Tuesday, when the NASDAQ posted its largest, one-day advance ever following an announcement by Greenspan that the Federal Reserve Bank was optimistic about the future and may not cut interest rates, at least in the short term.
Most of the popular technology stocks soared to double-digit increases when the news was announced, and across the board the optimism was shared wholeheartedly.
Some analysts also attribute the market surge to fact that the latest news seems to indicate that the presidential election is finally nearing its conclusion.