Why did the stock market drop so much today?
Stocks sink as US-China trade war flares Stocks closed sharply lower on Friday after President Trump said his administration is considering imposing a massive increase in tariffs on Chinese goods. Stock market today: Dow sinks 700 points, S&P 500, Nasdaq plummet as Trump threatens ‘massive increase’ on China tariffs. US stocks turned lower Friday as President Trump and China traded blows on tariffs, with Trump threatening a massive increase in tariffs on Chinese goods.
Why is the market falling suddenly?
A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. Crashes are driven by panic selling and underlying economic factors. They often follow speculation and economic bubbles. The 1929 crash was caused by many factors including a boom after world war i, overproduction in key industries, increased use of margin for purchasing stocks, and lack of global buyers around the world due to the war. Some lessons have been learned since then.