Central bank stimulus says stocks go higher through end of 2012

Call it a tug of war between fear of the consequences of the U.S. fiscal cliff and hopes that a wave of stimulus from the Federal Reserve and the Bank of Japan will drive stock prices higher. On the one side the Fed’s promise to buy $85 billion a month in Treasuries and mortgage-backed securities, and severe political pressure on the Bank of Japan to turn on the monetary pumps. On the other, worries about the U.S.fiscal cliff

Been down so long this looks like up to me

Want to know how far the financial markets have swung toward fear of the fiscal cliff this week? Notice that all it took to turn the U.S. stock market indexes around this morning was some vague optimism expressed after a meeting convened by the White House. The Standard & Poor’s 500 stock index, which had tumbled to 1344 had recovered to 1360 as of 1 p.m. New York time.

What’s behind today’s sell off–Obama’s re-election or chaos in Greece?

Today is one of those days when we’ve got a big stock market move in the United States—the Dow Jones Industrial Average is down 2.25% or nearly 300-points at 1 p.m. New York time—and two big potentially market-moving events–Obama’s re-election and a vote in Athens amidst a huge rally and sporadic violence on the newest austerity package. So what is the explanation for today’s market drop?