Because there is always the "next month"! Hope springs eternal in the algo bots' mind (which went haywire earlier today).
The stock markets in the world are dead, as a price and value discovery mechanism. They have been, particularly since Helicopter Ben and Mighty Hank (Paulson, then-Treasury Secretary) pulled off a stunt in the summer/fall of 2008 to directly and openly intervene with the financial markets.
The only noticeable drop is seen in gold (down nearly 1%), with the reasoning that "since the central bank won't inflate anytime soon, risk is off!" The problem with that of course is that the riskiest and fluffiest class of asset (equities) which has defied the gravity remains unchanged. Risk off? What risk off?
From AP (8/1/2012):
Fed says US economy has slowed, takes no new steps
Federal Reserve says US economy has decelerated in first half of year, takes no new steps
WASHINGTON (AP) —
The Federal Reserve says the economy is losing strength and repeated a pledge to take further steps if the job market doesn't show sustained improvement.
The Fed took no new action after its two-day policy meeting. But it acknowledged that economic activity had slowed over the first half of the year, unemployment remains elevated and consumer spending has weakened.
Policymakers repeated their plan to hold short-term interest rates at record low levels until at least late 2014.
Most economists say the Fed is likely to go further at its September meeting by launching another bond-buying program to drive down long-term interest rates.
The statement was approved on an 11-1 vote. Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, dissented for a fifth time this year.