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- The stock market lost nearly $ 2 trillion in October. Here’s what happened:
The stock market lost nearly $ 2 trillion in October. Here's what happened:
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Loading...October was very tough for US stocks, which, despite recovering part of the losses in the month, ended as one of the worst months since the financial crisis.
The S & P 500 lost $ 1.91 trillion in October, according to S & P Dow Jones Indices analyst Howard Silverblatt. Losses mostly came from the industry. October was the worst month for the S & P 500 since September 2011.
"Volatility in October has become legendary and we are not just talking about the 2008 crash," said Silverblatt. "October is a much more unstable month than any of the others because of the speed at which markets have failed.
The month went down for shares when Federal Reserve Chairman Jerome Powell said the central bank is far from neutral interest rates. Powell said the Federal Reserve does not need the policies put in place to get the economy out of the latest financial crisis. He said that "we do not need the really" extremely aggressive low interest rates "that the central bank created a decade ago. The Federal Reserve will probably raise the interest rate to 3.4% before it stops, according to the latest forecasts.
The major technology stocks - best known as FANG: Facebook, Amazon, Netflix and Google and Alphabet - were among the hardest hit. Amazon ended the month with - 20.2% and Netflix ended - 19.3%. Investors have also fled after reporting revenue. Facebook and Alphabet ended October down 7.7% and 9.7% respectively.
The S & P 500 lost 6.9% in October, its biggest monthly decline since September 2011, when it fell by 7.2%.
The S & P 500 fell below the last two key levels on October 26. The index fell below its 200-day moving average and dropped more than 10 percent from its highest peak on September 21. October will be the fourth month this year, when the S & P500 reaches the 200-day creep.
The third quarter report also was about to turn out to be the worst for the stock since 2011.
Trader Martin Nikolov Read more:
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