US Share Market: There was devastation in the American stock market! Due to these 5 reasons Dow Jones fell 800 points in a single day

US Share Market Crash: There was such a disaster in the American stock market on Thursday that every investor was surprised. The Dow Jones index, which was rising continuously for four days, has suddenly slipped down by about 800 points. This proved to be the worst day of the last one month. Earlier the market was touching record highs but now there has been a brake on the rise. The S&P 500 index fell by more than one and a half percent and the Nasdaq closed down by more than 2 percent.

The special thing is that Nasdaq remained in the red 5 times out of the last 6 trading sessions. Talking about the Asian market, a decline of 1.63% is being seen in the Nikkei index. A strong decline of 2.25% is being seen in Kospi. Investors have been continuously booking profits. But there is a decline in the US market due to some main reasons.

Heavy selling in tech stocks

According to CNBC report, the first reason behind this decline is heavy selling in tech stocks. The enthusiasm that was there in AI related companies now seems to be cooling down. Talking about Oracle company, a big deal was signed with OpenAI in the month of September. The shares jumped by 36 percent that day. But now a decline has been seen. Apart from this, shares of big tech companies like Apple, Google and Microsoft have slipped.

America’s longest government shutdown ends

The second major reason behind this decline is the end of the longest government shutdown in America. This shutdown was the longest in history. Now Wall Street has to prepare for a lot of economic data in the coming days. Bureau of Labor Statistics is going to release its data release calendar soon. But there is a big twist here. The White House made it clear that complete information about unemployment will not be available in the employment data for the month of October. BLS has not yet given any official statement on this. This spread more uncertainty in the market. Inflation data, employment data, GDP, all these numbers will decide the direction of the market.

Federal Reserve keeps an eye on interest rates

Investors are also keeping an eye on the interest rates of the Federal Reserve. The hope of reducing rates in December is now weakening. At least 5 Fed officials gave statements throughout the week. Some experts say that it would be too early to make cuts in December. While some have denied that they will not agree to the proposal of December 10. According to the CME Fedwatch tool, the probability of a cut of 25 basis points has dropped from 61 percent to just 51 percent. This is a shock for investors. Because shares get support due to low rates. But now uncertainty has increased. Investors are keeping an eye on what the Fed will do.

impact of cryptocurrency

The decline in risky assets also affected crypto. Bitcoin slipped below one lakh US dollars. This is the lowest level since the month of May. Bitcoin has now fallen by about twenty percent from its highest level in October. Ethereum and other coins also fell. Crypto investors have also become nervous due to this.

Investors running towards safe investment

An expert named Matt Malley of Miller Tabak & Company said that the market has become very expensive now. Low interest rates are necessary to maintain such an expensive market. But there is so much uncertainty and so many figures coming together that an atmosphere of fear is being created. The dollar index has again reached close to ninety-nine. But gold is showing strength. It is hovering around $4200 per ounce. This clearly shows that people are running towards safe investments due to fear. Investing money in gold and bonds. Overall, this fall has wiped out about 60 percent of the week’s gain. This shock in the American market can affect the markets of the entire world.