Is the party finally over on Wall Street? So far this month, the Dow is down more than 4 percent, the S&P 500 is down almost 8 percent, and the Nasdaq has fallen over 12 percent. In fact, the Nasdaq dropped almost 4 percent on Tuesday alone, and at this point it is almost 23 percent below the all-time high. Needless to say, that puts the Nasdaq solidly into bear market territory. Tech stocks were at the front of the long march up the mountain, and now they are leading the avalanche back down. Hundreds of billions of dollars in paper wealth is being wiped out, and a lot of the “experts” are suddenly warning that the worst is still yet to come.
So why are investors so spooked?
Well, CNBC is blaming a number of different factors…
Worries about the global economy loomed. Investors are worried about a Covid surge in China. Regarding the war in Ukraine, a top Russian official said the threat of nuclear war is real. Plus, high inflation in the U.S. is denting demand for goods from houses to sneakers.