Connect with us

Hi, what are you looking for?

Stocks

Global Stocks Take A Tumble

The stock market staggered last Wednesday when it suffered its highest loss in 8 months, triggering other markets to slump globally. While many factors contributed to the massive sell off, key reasons are the rising interest rates, and trade disputes with China.

The Dow Jones lost more than 800 points, a 3 percent dip, while European and Asian markets saw a drop of 2 and 5 percent, correspondingly. President Trump was quick to lash out at the Federal Reserve for their rising of interest rates, but economists see their move to do so as a natural reaction to the market to curb inflation.

While the President also stated that this loss could be seen as a “correction,” one that the market had been waiting for, he said that the Fed had “gone crazy,” in a statement after holding a rally in Pennsylvania. Many are viewing the President’s own aggressive stance with China, the implementing and threats of tariffs, and the subsequent tension created, as a major reason for investors dropping massive amounts of stock.

Also, interest rates are always sure to rise during strong economic growth in order to combat inflation, and the US is experiencing a highly dynamic economy at the moment. The problem then comes down to whether or not investors are confident that it will stay this way. Much of the sell offs were for tech and media stocks, which took big hits after they had seen lots of growth over the past year.

You May Also Like

News

In the past year, Peloton, manufacturers of stationary exercise bicycles and treadmills, has been experiencing some severe financial difficulties. The company went through a...

News

While the ongoing supply chain problems affecting the global economy have had the expected effects, they’ve also had some decidedly unexpected effects. Specifically, many...

News

As gas prices continue to rise and consumer confidence drops, not to mention the ongoing war in Ukraine, the European economy is taking a...

News

As the environmental need for electric vehicles becomes more pressing, and the car-buying public becomes more eager for them, automotive manufacturers are getting ready...

News

This morning, Coinbase CEO Brian Armstrong sent a mass email out to his company informing everyone that, as stock and crypto prices slip and...

News

Last week, a former cybersecurity expert for Twitter, Peiter “Mudge” Zatko, released a whistleblower report on the social platform. In his report, Zatko cited...

News

Zelle is a peer-to-peer payment app and service that can be used by individuals to send and receive money, in a similar vein to...

News

Earlier this week, following the third-term victory of Chinese President Xi Jinping, market shares in Hong Kong experienced a sudden, violent sell-off. Xi’s controversial...