FX.co ★ US stock market tumbles

The stock market ups and downs can be fast and scary and resemble a roller coaster. Recently, after a continuous rally, the New York Stock Exchange has faced a sharp collapse. As emotions took over traders, the plunge in US stocks became even deeper. One sell-off triggered a new round of selling wave, thus accelerating the pace of decline. It can be hard to stay calm and patient in such a situation. So, panic swept through the stock market, urging investors to withdraw funds. Hopes for a swift global economic recovery have been dashed as all the indicators continue to slide. A steady decrease in the financial markets is observed across the board: from gold and oil prices to tech stocks. Lauren Goodwin, New York Life Investments economist and multi-asset portfolio strategist, noted that the problem could be much more complex than it seemed. The current collapse is more serious than just fluctuations in the expected range. It basically signals that the global economy failed to revive from the knockout blow delivered by the coronavirus pandemic. The expert added that investors’ expectations of a slow and steady recovery were shaken. Given the growth dynamics that preceded the plunge, analysts warn that the current correction of the market is far from normal.