alt Hacker News"was triggered by new information,"
Trump had been threatening tariffs for the campaign and mentioning them before. There wasn't that much new information that should have caused the plummet.
Also I will point out that it's more like the avoidance of information that caused some of it Nvidia's stock plunged on an announcement that went something like:
Sentence 1: we are putting tarrifs on Taiwan Sentence 2: except semiconductor related goods
It as if the market participants read sentence 1 and very few of us read sentence 2.
The EMH would assert that a casual observer like me wouldn't see the price gap between the time it took for people to read sentence 2. But it took several business days...
> Trump had been threatening tariffs
Trump made many empty threats his first term, so many didn't believe he would follow through to the degree he's done this term.
> The EMH would assert that a casual observer like me wouldn't see the price gap between the time it took for people to read sentence 2. But it took several business days.
This is a good point and surely sounds like an effect of liquidity demand. The same investors had to dump Nvidia also to pay for other losses and that briefly removed liquidity providers who wanted none or the volatility, until things calmed down a little.