Following market turbulence of the past week, the stock market is experiencing what may be its worst week in the decade since the Great Recession, according to the Washington Post. The downward spiral of the market is being partially credited to the current turmoil in Washington, with the possibility of a government shutdown, an increase in interest rates, and a plunge in oil prices. Although the stocks had made a slight “rebound” after a “Federal Reserve official eased investor worries” regarding increased rates, the market has nonetheless continued to decline.
“Technology is part of the same story as the overall market,” said Scott Wren, global equity strategist at the Wells Fargo Investment Institute. “The market is fearing a global slowdown and is still worried about the Fed, even though they dragged Williams out to try to cushion what Chairman Powell said on Wednesday.
The Washington Post also reported that the Dow has fallen about 10 percent from its peak in September, which is “wiping out all gains from the year.” Not only this but the US economy slowed more than was initially expected in the third quarter despite claims that it remains to be a robust economy.
Fed Chair Jerome H. Powell said at a news conference Wednesday that the economy remains “healthy” and “solid” and that he did not see any reason to sharply change the Fed’s path of gradually pulling back support for it. But he acknowledged the economy is showing signs of “softening” and that there is a “fairly high degree of uncertainty” about what the Fed will do.