Stock Market Forecast: How Long Will Indexes Keep Dropping?
No asset can always go up. That’s something every investor knows and should take into account when trading or investing. Even seemingly untouchable runs can get cut short by some negative news or a sudden occurrence related to them. If you want recent proof of that, look at Bitcoin’s (and by extension, most cryptocurrenies‘) run last year. It soared to massive heights only to get decimated by a few figureheads and legislation surrounding it.
Still, you’re aware that indexes and digital currencies are in entirely different ballparks. However, in the investing world everyone plays by the same rules, and indexes have been steadily climbing for a while now. However, since the start of the week, they’ve been on a slide with no certain end in sight. Dow and the S&P 500 dropped every day of the week so far, and Nasdaq was only slightly better than that. The last index we mentioned is clocking in three consecutive days of downward movement.
Naturally, the severity of the drops isn’t as massive as in the ever-turbulent world of cryptocurrencies. However, while every index can have a few off days, consecutive losses aren’t that common. The consistency of the fall has some experts worried, especially since a lot of stocks are doing fine. In fact, shares from some of the world’s biggest companies are weighing down the indices.
S&P 500 and Nasdaq are the ones that are disproportionately affected by poor major stock performance. Among the most notable names here, we have Netflix, Amazon, Google’s parent company Alphabet, Facebook, and Apple. Just on Wednesday, Netflix alone recorded a drop of roughly 1%. Europe and Asia seem to be suffering from much of the same issue, with indexes sliding all around. In Europe, the FTSE 100 was the major loser, dropping 1%, while in Asia, it was Hang Seng with -2.3%
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