Yesterday's trading day ended with a sharp drop in the US stock market: the decline in the S&P 500 and Nasdaq indices was the highest since May (4,305. 91 points and 14,530. 1 points, respectively). All 11 major industry subindexes of the S&P 500 also finished trading in the red. Today, the indices managed to recover somewhat: the current value of the S&P 500 is 4,357. 73, Nasdaq – 14,713. 9 points. This drop can be explained by the fact that investors are leaving stocks amid concerns that a possible default of the Chinese developer Evergrande could have a very negative impact on other sectors of the economy. Additional pressure on the indices is exerted by the expectation of the results of the US Federal Reserve meeting, at which the Central Bank can prepare the ground for curtailing incentives. Experts believe that the S&P 500 index can face a correction of 10% when the Federal Reserve begins to curtail monetary incentives. And signs of a slowdown in economic growth may increase the pullback to 20%. Investors' concerns are visible not only in the decline of the stock market. It is worth noting that the CBOE volatility index, which is also called the «Wall Street fear index», rose to 25.7 points.
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