"The foundation of the market movements we have seen over the last several days has been through human emotion," Adena Friedman told CNBC at the World Government Summit in Dubai on Monday.
At their lows, all three major U.S. indexes slumped into correction territory last week after hitting record highs in January. Financial analysts have long warned that the rocketing bull market would at some point come to a screeching correction thanks to its highly overvalued stock prices. It appears last week was the first sign of that, though experts are divided over whether the market will sink further.
Meanwhile, as more and more transactions are made through algorithm trading — also known as algo trading — some strategists have argued that the sell-off could have been prompted by technical mechanisms.
When asked whether it was safe to say humans — and not algorithms — were still in control of market, Friedman replied: "I think humans are definitely in charge of the decisions in the market. I think that the way that the algorithms are written is basically on the back of a human decision."