The fall of Dow Jones: how it will affect the residents of the United States and who lost billions in a day

The Dow Jones Industrial Average fell 1175 points on Monday, the biggest single-day drop for the major U.S. stock index since the 2008 financial crisis.

Фото: Depositphotos

According to Air force, the day the leading US stock index fell by 4,6% and broke the record for the fall of 2008 of the year.

September 29 The 2008 Dow Jones index fell by 777,68 points after the congress did not approve the allocation of state aid to banks 700 billion after the collapse of the investment bank Lehman borthers.

Now investors are looking for signals of changes in economic forecasts, expecting that they can contribute to the growth of the key rate.

On Friday, the US Department of Employment released statistics that showed that Americans ’salaries rose more than expected.

With rising wages, there is a risk of rising inflation due to higher spending.

To counteract possible inflation, the US central bank intends to raise interest rates.

This scares investors who expect the key rate in the US to rise no more than two or three times a year.

Stock Indexes

Following the Dow Jones, other American stock indices fell: the S&P index lost 3,8% and the Nasdaq lost 3,7%.

Фото: Depositphotos

The London FTSE 100 closed at 1,46% lower than the opening Monday.

On Tuesday, following the US, prices fell on Asian stock markets.

Investors get rid of stocks in anticipation of rising interest rates.

Japan's Nikkei 225 index fell 5,3% by the end of morning trading, and Hong Kong's Hang Seng index fell 4,7%.

10 richest Americans are stranded by $ 20 billion

The ten richest Americans were impoverished immediately on Monday for $ 20,3 billion, writes Forbes.

More than others suffered the famous American investor, the head of the company Berkshire Hathaway Warren Buffett. His condition declined during the evening of February 5 by $ 5,3 billion (by 6%). Nevertheless, with a fortune of $ 84,6 billion, he retained the third place in the ranking of the richest people in the world Forbes in real time.

Фото: Depositphotos

Founder Facebook Mark Zuckerberg lost 4,7% of his fortune in a day. For several hours, he was depleted by $ 3,6 billion, the company's shares Facebook Inc. dropped in price by 5%. The current state of Zuckerberg Forbes valued at $ 73,1 billion, it ranks sixth in the Forbes rankings.

The richest man of the world - the head Amazon Jeff Bezos - entered the top three most affected by the index fall Dow Jones. His losses amounted to $ 3,2 billion. These losses "compensated" for the increase in welfare Bezos last week, when in one day his fortune rose by $ 3,2 billion against the background of the company's quarterly financial report.

In general, over the past 4 of the month - before the “black Monday” of February 5 - Bezos became richer by $ 28 billion, shares Amazon have grown over this time by 30%.

Positive news and market correction

In January, the Dow Jones index showed a rapid growth: within a month it overcame the lines in 25 and 26000 points.

The stock drop began last week after rates of US employment growth helped forecasts for a rise in the discount rate.

“US economic news was more optimistic than expected,” says chairman of financial services company Motley Fool David Kuo. “Paradoxically, the market correction was caused by positive economic news.”

US President Donald Trump, after taking office, spoke several times about the growth of US stock markets. Trump's latest tweet on this topic dates back to January 7.

“The stock market is creating incredible benefits for our country, not only in terms of record share price growth, but also creating new jobs. Job. Job. Job. Seven trillion dollars of value has been created since we got our big election victory!” - Trump wrote.

However, a White House spokesman said on Monday in an interview with CNBS that the fall in the Dow Jones index is worrying.

“We are always concerned if we see a drop in market capitalization, but we are confident in the fundamentals of the economy,” the official said.

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