The US stock market has not been this bad since the economic crisis caused by the collapse of Lehman Brothers. Wall Street has experienced its worst 12 months since 2008.
2022 will go down in the history of the world economy as negatively as the biggest economic crisis of the 21st century, that is, 2008, when markets struggled with the consequences of the collapse of the US credit bubble and the collapse of Lehman Brothers. who stirred the snowball.
Wall Street with terrible data
Major US stock indexes fell sharply. The Dow Jones fell 1.1%, the S&P 500 fell 1.2% and the Nasdaq, which brings together the tech giants, closed down 1.35% since the open. It was another day of decline on Wall Street. Experts predict that this will be the worst December in history for Nasdaq indices.
Recent disastrous results Tesla, included in this index, has already fallen in price by an astronomical 69 percent this year. In December alone, Elon Musk’s company lost 42%. its capitalization. The electric car mogul is currently worth just $112 per share. Chasing the lead until recently, Tesla is now cheaper than, for example, Nvidia, which makes computer hardware, and retail chain Walmart.
Apple stock is also very bad. The company from Cupertino loses on m.in. about the recent strikes at China’s largest iPhone factory.
Investors fear China’s decision
Economists note that one of the main reasons for the recent turmoil in the stock market is the decision of the Chinese government, which decided to ease the restrictive anti-COVID policy. So far, China has been the only economic power to enforce such strict restrictions.
Although the situation with the pandemic in China has not yet been resolved, the government was forced by the citizens to lift the restrictions. Some countries, such as the US and Japan, are considering imposing restrictions on traffic from China, fearing a new rise in cases. It also affects the economy and investor sentiment.
Source: Wprost
