How Twitter Affects the Stock Market [INFOGRAPHIC]

Posted on April 26th 2013

How Twitter Affects the Stock Market [INFOGRAPHIC]
When the Associated Press Twitter account was hacked and a fake tweet was sent out saying that President Obama was injured in a White House bombing, you may have wondered how one tweet could cause the entire stock market to react so hastily.This infographic from MarketWatch describes how traders take real-time cues from trusted sources (like the AP’s Twitter account) and make hair-trigger decisions based upon that information. It’s a fascinating and surreal look at how integrated social media has become with the stock markets. 

Stock market Twitter Infographic

Photo Bundesarchiv, B 145 Bild-F078969-0007 / CC-BY-SA [CC-BY-SA-3.0-de], via Wikimedia Commons

 

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Jim Dougherty

I write and shepherd content on Leaders West. I write about how smaller businesses can leverage social media to their advantage (and some other stuff).

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Comments

Isn't it scary then to leave such important tasks unto the hands of machines who can't reason?