Stocks plummeted yesterday, with the Dow Jones Industrial Average falling more than 400 points and Standard & Poor’s 500-stock index closing down 53.24 points, at 1,140.65. The day was just the latest in a series of wild swings in financial markets in recent weeks. What’s causing the severe fluctuations? We’re taking a look at how “robot traders” – computers that are programmed to automatically buy or sell stocks based on a set of criteria – affect the markets. Could market woes be tied not to human worry, but to machine worry? John O’Donoghue, head of equities at Cowen & Company, tells us about high-frequency trading and how it impacts the market.
The story you just read is not locked behind a paywall because listeners and readers like you generously support our nonprofit newsroom. If you’ve been thinking about making a donation, this is the best time to do it. Your support will get our fundraiser off to a solid start and help keep our newsroom on strong footing. If you believe in our work, will you give today? We need your help now more than ever!