HIRE WRITER

The United States Stock Market

This is FREE sample
This text is free, available online and used for guidance and inspiration. Need a 100% unique paper? Order a custom essay.
  • Any subject
  • Within the deadline
  • Without paying in advance
Get custom essay

Investing in stock securities should be made with the right time and the right knowledge of stock securities. A lot of news and knowledge about stocks and securities can be learned both from the internet and from school discussions. But for those of us who have just learned this, we do not have the strength to realize investment plans. Everyone likes to make money, but when it comes to stocks and securities, the stuff inside is really profound. Look back at the US stock market.

According to today’s news local time is March 13th 2020. Because of the effects of the coronavirus, when President Trump issued a national speech in the Oval Office of the White House, declaring that the United States was active and swift, the number of confirmed cases in the United States was much lower than in Europe. It is unknown in Europe that the United States has taken preventive and restrictive measures, causing the virus to spread in Europe. In order to prevent new cases from entering the United States, all Europeans will be suspended from travelling to the United States for the next 30 days.

The new rules will take effect in the early hours of March 13, but the UK is not limited. Regardless of whether this decision is right or wrong, the US stock market has been double-hit by the plunge in international oil prices and the corona virus epidemic. Today, the Dow Jones Industrial Index once again fell sharply by more than 1,700 points, a decline of more than 7% of the broader market index. It triggered the suspension mechanism of trading for the second time in a week. ‘Share God’ Buffett recently accepted an interview from the media that the current situation in the US stock market may be his life-long experience. But Buffett still feels that the financial tsunami of 2008 is far more terrible than it is now.

Prior to this week, the last Dow Jones Industrial Average meltdown occurred during the 1997 financial turmoil. After 23 years, a double pinch by the plunge in international oil prices and the coronavirus epidemic triggered another fusing. However, the third blowout occurred only after 3 days. It is generally believed that although President Trump has shouted confidence in investors, he has given some stimulus plans. But compared with the sudden announcement of a 30-day ban on the entry of European tourists, the bail-out plan is completely incomparable to the panic brought to the market by the epidemic.

Increasing US concerns about the new crown virus have weighed on the stock market. ‘The daily life has been severely disrupted,’ said Nancy Messonnier, director of the National Center for Immunity and Respiratory Diseases at the Centers for Disease Control and Prevention (CDC) on Tuesday. The World Health Organization has not yet announced that the new coronavirus infection is a pandemic, but the epidemic has reached South Korea, Japan, Malaysia, Italy, and Iran. Austria, Spain, Croatia and Switzerland have also confirmed their first confirmed cases. Investors don’t know how long the outbreak will last. It is too early to determine how much the outbreak will hurt company earnings, but many companies, including Hewlett-Packard and MasterCard, believe the outbreak will last for some time.

Strategists and analysts believe that uncertainty over the outcome of the US presidential election has also started to push the market down. Many believe that if Vermont Independent Senator Bernie Sanders behaves as a democratic socialist, he will win a Democratic presidential nomination, and may even be elected president, and the stock will be hit because he is considered an anti-business candidate by some people. OANDA senior market analyst Ed Moya said: ‘If Sanders is nominated, U.S. stocks will be very risky.’

Before US stocks began to plunge this week, US stock valuations were already considered high. According to a MarketWatch survey of analysts, the S & P 500 is trading at 18.9 times forward earnings expectations, which is an increase from 16.2 a year ago. Except for a brief period in early 2018, 18.9 was from May 2002 The highest forward price-earnings ratio since. Due to doubts about global economic growth after the corona virus outbreak, US 10-year Treasury rates hit a record low on Tuesday. During the session, the lowest interest rate on US 10-year Treasury bonds fell to 1.31%, setting a record low of 1.318% in June 2016. In the European government bond market, investors continued to buy German, French and British government bonds, while Italian government bonds were sold for the second day in a row.

Cite this paper

The United States Stock Market. (2021, Apr 30). Retrieved from https://samploon.com/the-united-states-stock-market/

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Hi!
Peter is on the line!

Don't settle for a cookie-cutter essay. Receive a tailored piece that meets your specific needs and requirements.

Check it out