At SoloDinero we explain why it is said that the US Stock Market experienced its worst week in months and what this means for your finances now and in the short term
Bad news: the US stock market closed lower this Friday, September 16, after going through one of its worst moments in months. In fact, this week has already been described by financial market experts as one of the worst of the year. And analysts, bankers and stockbrokers warn that there is still a long way to go “of pain”.
After what was called a “Bear Market Rally” or temporary upward rally, in which the S&P 500 index recovered 17% until mid-August, the fall has been monumental, leaving this stock market index (one of the due to the fact that it groups 500 of the largest companies in the United States) with a decrease of 19% and only 5.6% above the downward record registered in June of this year, according to a report by The New York Times .
This situation has raised the alarms of the most important brokerage firms in the world.
Nicolai Tangen, manager of Norway’s sovereign wealth fund, told The New York Times that things are currently “worse than we could have imagined,” warning pessimistically that “he doesn’t think there is anywhere in the world where money can be made in the near future.”
The main drop in stock market indices occurred after the publication of the most recent Consumer Price report from the Bureau of Labor Statistics (BLS), which indicated a decrease in year-on-year inflation in the month of August of 8.3%, which represented a reduction with respect to that registered in July (of 8.5%), but it was not low enough for economists to reduce their concerns about this phenomenon.
And it is that an inflationary rate of 8.1% is still extremely high (among the highest in recent decades), which implies that, probably, the Federal Reserve will continue to increase interest rates to
What does it mean for your finances that the US Stock Market is going through its worst moments in months?
This week’s stock market crash is another big blow to all US investors, many of whom benefited from temporary rallies over the summer.
Likewise, financial experts have pointed out that investors can expect high levels of volatility in the markets as the year progresses, according to a report by The New York Times.