Why and who led to market crash?

The first thing we need to know about the downgrade of the stock market is that it is not caused by a bad fundamental or bad prospects for any economy in the world!

In fact, there was no specific reason for the reversal of the markets, which sent Dow with more than 1500 points down, minutes before the closing of the markets. The most likely reason of the downgrade is that a large number of robots operating on the market multiply sell-offs and short positions. On the other hand, the rise in interest rates and high bond yields were and remain the main fears among investors.

Who lead to the fall?

Looking at the data of the state activity among the brokers, it is clear that the largest volume of the transactions (Buy + Sell) is for Barclays Capital, 32.27%. Immediately afterwards, UBS Securities took 28.55%, and Deutche Bank and Virtu Americas split 15.18% and 14.29% respectively. Here are the details:

Despite crash-a, many Wall Street players are of the opinion that such a correction would be healthy and welcome to investors. The real indices were traded where they were in December, and after the unprecedented growth in the last 12 months, such a downturn was fully expected. The impulse is still in force, and the price does not signal that the decrease will end in the near hours. One thing is certain, investors will take advantage of this to "buy at a cheap price."

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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