May 22, 2024

U.S. Markets show steep decline after global selloffs over the weekend

Last week was a bumpy one for the stock market, culminating last Friday with high losses and the market’s 5th weekly decline. This came as investors had to balance both a strong jobs report for April against worries that the Federal Reserve may cause a recession in its effort to stave off rising inflation. The Fed hopes to raise rates to slow the economy and bring down the highest inflation in 40 years. But, in doing so they risk the chance of stopping economic development too much too quickly. 

Another reason the markets took such a big hit has to do with rising COVID-19 cases in China. The Asian country reported its exports only rose by 3.7% which is sharply down from March’s 15.7% growth. Companies and investors are worried the Chinese government’s “Zero-COVID” strategy to combat rising cases is disrupting global trade and activity in autos, electronics, and other industries after most businesses in Shanghai and other industrial centers were forced closed.

That among other issues such as the war in Ukraine have led markets all over the world to fall, including in: Japan, South Korea, Australia, Indonesia, France, Germany, and the U.K.