The AP’s Twitter account was hijacked and used to post the following: “Breaking: Two Explosions in the White House and Barack Obama is injured.” Within a few moments, the stock market took a 1% nosedive, before returning to the norm when it became apparent the account was fake.
A few thoughts and questions:
Are automated bidders using natural language analysis now? Is some cobbled together sentiment engine marking a tweet from a (usually) trusted source as negative, triggering a precise sale? If so, will we see a rise in noise bots, creating a shadow news economy to screw with competitive holdings?
Look how liquid the market is: within a couple minutes 1% was gone.
People are making real business decisions from Twitter. (This blip will likely figure into countless social media presentations for years to come.)
What will we legislate first: news speed or market speed?