The Key Factor Spooking Investors and Sending Stocks Into Freefall
The Dow suffered its worst point drop in history, closing down over 1,000 points. Riva Gold, Markets Reporter at WSJ joined to break down the factors spooking investors.
Gold emphasized that the big scare in the market was triggered by the wage growth in the jobs report. She added that it brought worries of inflation and rates hikes back into the spotlight. Gold said the fundamental backdrop for stocks hasn’t really changed. She points to corporate earnings and credit market as indicators that the market could be in good shape.
Gold said the biggest factor dragging down market is fear of fed raising rates. She thinks it's a a wake-up call for the equity markets that inflation will accompany growth. This means corporations will have to pay employees more, which ultimately weighs on profits, Gold added.
A ransomware attack has prompted a health care chain that operates 30 hospitals in six states to divert patients from at least some of its emergency rooms to other hospitals, while putting certain elective procedures on pause, the company announced.
Online fashion retailer Sheen is reportedly said to go public. Multiple media outlets reported that the Chinese-founded company has filed confidentially for an initial public offering in the U.S.
Under Google’s updated inactive account policy, which the tech giant announced back in May, accounts that haven’t been used in at least two years could be deleted. Accounts deemed inactive could be erased beginning Friday.
