STOCK market uncertainties continue as worries about inflation push bond yields higher.
The market is expected by many to crash as the fourth quarter approaches.
What happened to the stock market today?
The Dow Jones shed 600 points, while the S&P 500 slipped by 2.1 percent and Nasdaq declined 2.8 percent.
The 10-year Treasury bond yield rose to 1.52%.
“Inflation is elevated and will likely remain so in coming months before moderating,” said Federal Reserve Chairman Jerome Powell.
If Congress doesn’t raise the debt ceiling by October 18, the government will run out of cash, according to CNN.
The Conference Board’s consumer confidence index continues to decline, making this the third month in a row.
Prices are also raising in the natural energy department, due to a shortage of natural gas an increase in demand of production.
When did the stock market last crash this year?
On February 23, 2021, The Dow Jones shed 70 points, while the S&P 500 slipped by 0.5 percent and Nasdaq declined 1.3 percent.
The yield on the 10-year US Treasury note ticked higher on February 23, to around 1.39 percent.
Tech stocks have been sliding in the past few months because of higher rates, which continued on February 23.
What are bitcoins and other cryptocurrencies?
Bitcoins are defined as a type of digital currency that operates independently of a central bank.
A public ledger maintains all Bitcoin transactions, with copies available on servers around the world.
Bitcoin can be sent and traded among people, it is like a completely online version of cash.
Other cryptocurrencies exist and have gained popularity over the years. These include Ethereum, Stellar, and the meme-based Dogecoin.
What causes a stock market crash?
A stock market crash is when the market suddenly declines in prices over a major section.
This can be caused by speculation and panic-selling, which can result from rumors and factors like inflation.
Some major crashes include the Dot-Com crash of 2000, caused by investors creating an economic bubble by investing into tech companies. In 2008, Dow saw the biggest point drop in its history at the time, losing over 700 points in one day.
Stock Market Timeline:
- September 28, 2021: Stocks decline as Dow loses 600 points, S&P loses 2.1 percent, and Nasdaq declines 2.8 percent
- February 23, 2021: Stocks decline as Dow loses 70 points, S&P loses .05 percent, and Nasdaq declines 1.3 percent
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