Why the Dow took a nosedive just before noon

This was the Dow today:

I'm sure you're all wondering what on earth happened. So here's some insight.

An Israeli fringe news site that always claims to have inside information on matters related to the military, Debka Files, published that the USS Nimitz is set to sail to the Gulf on Monday, officially to replace the USS Dwight D. Eisenhower, but in reality to add to the growing U.S. forces in the region.

Moreover, Debka claims that US financial sources in Bahrain report American investors in Bahrain have been advised to pack up business operations and leave.

Other significant points include a Russian source that is predicting "that a U.S. strike against Iranian nuclear installations codenamed Operation Bite has been scheduled for April 6 at 0040 hours."

Meanwhile, Al Jazeera showed Iranian TV footage of a U.S. aircraft carrier cruising in the Gulf. As tensions mount between Iran and the West over its nuclear program and over the 15 captured British sailors, each such report only creates adverse responses in the market.

Debka has been known to be wrong before and should always be taken with a grain of salt. As it is, the market is already recovering and Reuters has since reported that the "White House has not heard anything about U.S. citizens being advised to leave Bahrain."