Dow Jones 1,000 Point Dip Under Investigation

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The Securities and Exchange commission is still investigating what exactly caused a 1,000 point dip in the Dow Jones industrial average Thursday. Reports continued to circulate Friday that a computer glitch may have been at the center of the problem, although those close to the investigation have not confirmed these reports. The glitch is rumored to have originated from black box trading software that handles trading orders without human input. The software uses an algorithm to maneuver stocks tied to mutual funds and the like. Although the Dow Jones rebounded Friday, down to a loss of 140, it dipped by nearly 6% this week, taking other indexes with it. The abrupt plummet caused $1 trillion from the market to simply disappear. The vanishing act has agitated a number of lawmakers who are now asking that upcoming financial reform require transparency over the matter. Efforts to include such clauses in the reform are being spearheaded by two Democratic senators.

Unrest in the market is expected to continue into next week with the continually volatile situation unfolding in Greece and in other parts of Europe. It is unclear how long the SEC intends to keep its investigation open or what actions, if any, it intends to take to keep such an incident from repeating in the future.

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