"Since hitting rock bottom in 2009, stock prices have consistently increased without much volatility — that is, until these first few days of February when the Dow Jones Industrial Average fell over 2,200 points (-8.5%) and the S&P 500 tumbled 7.9% from their late-January highs. The most popular measure of stock market volatility, VIX, also spiked dramatically to levels not seen since 2011 and 2009.
Financial analysts and writers have pointed to a few events that may be behind the big movements in the stock market:
https://fee.org/articles/a-stock-market-tumble-is-the-correction-we-need/
Financial analysts and writers have pointed to a few events that may be behind the big movements in the stock market:
- Tax reform could have caused some extra uncertainty about the future for all businesses.
- Bond markets indicate an increase in future price inflation, which means that the cost of doing business could increase.
- The increase in expected inflation coupled with a new, optimistic-looking release of official data on wages across the US might be used by the Federal Reserve to justify further interest rate hikes.
https://fee.org/articles/a-stock-market-tumble-is-the-correction-we-need/