It's probably not a coincidence. When the televised coverage of the scandal was shown on the floor of the NYSE, a majority of the traders erupted in cheers. Spitzer may well have sacrificed his career with his weakness for the pricey prostitutes and so now the corrupt and criminal corporate titans can carry on with a lower risk of interruption and interference. Or, at the very least, those who were caught or humiliated in some way by Spitzer in the past can feel some childish schadenfreude that Spitzer is going down now. Hooray!

Also, has Spitzer been caught up in an investigation of a prostitution ring or did a prostitution ring get caught up in a (federal, DC-directed) investigation of Spitzer??

I might agree with Craig that it was bad business sense for a prostitution ring to accept such high profile clients... on the other hand who else can afford that much($1500+ an hour?)

The Dow rising 400 points was a sign of reawakened economic confidence in the prostitution sector...social conservatives like Dr. Laura had been bearish on the sector believing that the rising number of non-married couples was putting downward pressure on prostitution going so far as to suggest that it was dragging down the economy as a whole.

Of course for the big business sceptics one could track companies that had been recently declining but who surged when the news came out.

As for direct corrolations and moving markets I tend to think that the fall in the shares of Hillary Clinton winning the democratic nomination is linkable to expectations that sexual scandal in the public eye hurts her by the association of ideas.