US Stock Market Drops Sharply Amid Recession Worries 😮
Hey there! Have you ever heard about the stock market? It’s like a giant marketplace where people buy and sell tiny pieces of companies called “stocks”. On Monday, something surprising happened—the US stock market took a big tumble! 📉
But what does that mean? Well, the value of many companies went down all at once. Big names like Tesla, which makes cool electric cars, saw their stock prices fall by 15%! That’s a lot. Other tech companies like ASML and Micron Technology also lost more than 6%.
Why did this happen? It all started when President Donald Trump mentioned in an interview that a recession (that’s when the economy isn’t doing so well) might happen this year. 😕 His comments made many investors worried. When investors get scared, they might sell their stocks, causing prices to drop.
Some experts, like Ross Mayfield, an investment strategist, said that the president seems okay with the market going down if it helps him reach his goals. This surprised many people on Wall Street, which is where a lot of financial business happens in New York City.
Also, big banks like Morgan Stanley and Goldman Sachs lowered their predictions for how much the US economy will grow in the next few years. This added to the worries.
Additionally, some experts are concerned about investments in areas like artificial intelligence (AI). Rich Privorotsky from Goldman Sachs mentioned that China’s growing influence in AI is making some investors cautious.
But that’s not all! In Canada, some provinces decided to respond to US tariffs (extra taxes on goods from other countries). For example, British Columbia said they would stop selling US-made alcoholic drinks in their stores, and Ontario increased taxes on electricity they sell to the US.
All these events together made investors nervous, and that’s why the stock market dropped. But don’t worry! The economy has ups and downs, just like a roller coaster. 🎢 And just like any ride, things can go back up again. It’s important to stay informed and not panic.
Reference(s):
cgtn.com
