The Dow was set to open 1,300 points lower, and the broader market is on pace to plunge 4.5% Monday. The Nasdaq, full of risky tech stocks, was on pace to drop an alarming 6% and all of that comes amid a global market meltdown. CNN’s Rahel Solomon reports.
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date 2024-08-05 14:25:35
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Why the Stock Market is Freaking Out Today
The global stock market is experiencing a major sell-off, with the Dow Jones Industrial Average plummeting over 1,000 points. Market experts are attributing this sharp decline to a combination of factors, including concerns about the weakening labor market, high interest rates, and the impact of geopolitical tensions.
Rahel Solomon, a financial reporter, noted that the job report released last Friday showed weaker-than-expected employment numbers, which has heightened concerns about the economy. She also mentioned that interest rates have been stuck at 5% for quite some time, which has contributed to the market volatility.
GREG McBride, the chief financial analyst at Bankrate, warned investors to hold on tight, citing the common pattern of a 10% market pullback occurring on average every 12 months. He advised investors to take a long-term approach, embracing periods of market turbulence to potentially buy low or maintain their investment position.
The conversation also shifted to the Middle East, as tensions escalate between Iran, Hezbollah, and Israel. Democratic Congressman Adam Smith expressed his concerns about the situation, urging calm and caution, while also stressing the importance of supporting Israeli security and promoting a ceasefire in Gaza.
In an interesting aside, Congressman Smith shared his thoughts on Mark Kelly, the astronaut-turned-senator, being a potential running mate for Vice President Harris. He praised Kelly’s unique combination of skills, including being a fighter pilot and advocating for gun safety, as a great addition to the Democratic ticket.
