How NYC Centric Is Wall Street?

LaserWolf

After the attacks of 9/11 a few blocks from Wall Street, the stock market lost more than half it's value*. After Katrina the stock market is unaffected.Dan* Actually I don't really remember how much value the stock market lost, but it was a lot.

jlee

I'm not certain how well this argument works. I do believe that the economic uncertainty from the effects of Katrina will surely pay its toll on the market in the weeks and months to come (gas prices most obvious now). But there are a few factors (specifically logistics) that related to the dramatic decrease in the Dow Jones average after 9/11.



Most notably:



Days the New York Stock Exchange was closed: 6



I wasn't tracking the market so much back in '01, but the fact that the NYSE was closed, undoubtably was a catalyst for the drop (which was 684.81 points after it reopened). And while I have no proof, I think the market was less certain about the effects of Terrorism compared to a Natural Disaster. Both are/were horrorific, but the market had never really seen an act of terrorism like that before.



I think in October we will see the effects of Katrina much more in the market(especially after the labor department releases unemployment figures).



but to answer your question...I would say "yes", the market it NYC Centric.

Unknown

I'm not certain how well this argument works.