By Nick Baum
TUESDAY – 12/18/18
The Dow Jones Industrial Average, the largest stock in the US Stock Market and the go-to signal if the stock market is doing well, has slipped another 508 points at the end of the business day, ending up at a total of 23,592, the lowest point of the year.
However, the Dow Jones wasn’t the only powerhouse to fall. The Standard & Poor 500 hit its worst point of the year, and the Nasdaq also went into a negative rate. Multiple reasons are to blame for this, but here’s the largest two:
First, President Donald Trump signed a trade truce with China to end a trade war just weeks ago, but momentum from the decision had worn out, and many investors pulled out of their investments. Second, the Federal Reserve is rising interest rates, meaning that money is worth more. This makes investing in stocks more expensive, so many pull out.
Sources and Pictures: Google Finance, CNN Money, CNN Business, Wikipedia