Market Chaos amid Dow’s 1,000 Point Drop and Global Sell-Off

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Market Chaos amid Dow’s 1,000 Point Drop and Global Sell-Off

The Dow plummeted more than 1,000 points at its opening, before recovering to a 350-point loss around 11 a.m. The biggest drop for the Dow was 777 points back in September 2008 and today’s plunge is raising new fears over how far financial markets will fall. The Dow plunged more than 500 points last Friday, making it the worst week since 2011. The S&P 500 fell more than 2%, to 1,923 with companies losing more than $1 trillion in market value last week.

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China's Turmoil Eases as Investors Refocus on the U.S. Economy

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China's Turmoil Eases as Investors Refocus on the U.S. Economy

Investors in U.S. stocks and bonds have refocused their attention on the U.S. economy, as it continues to strengthen. The improvement in the economy may be a sign of the Federal Reserve increasing interest rates as soon as next month. People are starting to worry less about the effects of China’s currency devaluation.

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Is the Federal Reserve Setting Us Up for Recession?

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Is the Federal Reserve Setting Us Up for Recession?

In order to normalize monetary policy, the Fed stopped quantitative easing (QE), which was being used to stimulate the economy. Monetary policymakers will resist the belief that concluding the bond-buying program was a tightening of policy even though real interest rates rose at the suggestion that QE has a short half-life. The new normal for economic growth is low short-term rates while inflation expectations have decreased. With the end of the QE era, the yield curve flattened, equities started moving sideways, and the dollar rose as did GDP and employment.

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8% Fall in China Raises Concerns on Wall Street

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8% Fall in China Raises Concerns on Wall Street

The influence of China shares is very much alive in Wall Street as it fell in the red on Monday. Due to both concerns about China's slowing growth and in the wake of the biggest drop in Shanghai shares in 8 years, U.S. stocks are falling under immense pressure. Declining issues outnumbered advancing ones as The Dow Jones industrial average, Nasdaq and S&P 500 all fell to its lowest points after a long period of prosperity.

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