Thursday, October 4, 2012

Did Stock Futures Rise Because Romney Won the Debate?

I couldn't help noting that stock futures rose suddenly and sharply last night immediately during and following the Presidential debate between Mitt Romney and Barack Obama. What struck me was the odd hour -- between 8 and 10 pm Mountain Time -- that it occurred.

Why is this such an odd hour? Because at 10 here in Utah, the East coast of the US is already asleep (midnight), and it is still just 5 am in London, when most Europeans are still in bed. Both of North America and Europe are still asleep. Asia is awake, but the market movers in Asia usually occur earlier in the evening, around 6 pm here.

Thus, market movers at 10 pm are very rare. Perhaps the market was reacting to the perception that Romney handily won the debate, even in the eyes of left-wing pundits! Perhaps the market is reacting to the shift in momentum that this is likely to create in the presidential race, and a likely surge for Romney in polls!