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.
The number of Americans applying for unemployment benefits fell sharply last week, a sign that U.S. job market remains resilient despite higher interest rates.
The ousted leader of ChatGPT-maker OpenAI is returning to the company that fired him late last week, culminating a days-long power struggle that shocked the tech industry and brought attention to the conflicts around how to safely build artificial intelligence.
New Jersey will prohibit the sale of new gasoline-powered vehicles by 2035 as part of an effort to improve air quality and reduce planet-warming pollutants, officials announced Tuesday.
The founder of Binance, the world’s largest cryptocurrency exchange, pleaded guilty Tuesday to a felony charge that he failed to take steps to prevent money laundering as the company agreed to pay more than $4 billion following an investigation by the U.S. government.
More than 100 handguns were stolen from a store in southwestern Michigan after the manager was held at gunpoint outside his home and forced to reveal how to turn off the alarm, authorities said Tuesday.
