What Stock Market Loss Means For You in CLT
CHARLOTTE, NC– It was a wild day on Wall Street Monday.
The DOW will now try to recover from its biggest point one day drop in history.
The numbers just fell off the DOW in the final hour Monday, wiping an estimated $1.25 trillion off the U.S. stock market.
“The big question is how long is this going to last. How big is it going to be,” said Global Economic Analyst, Rana Foroohar.
Some economic analysts feared the historic fast drop after a good jobs report on Friday showed wages grew at the fastest rate since 2009.
“Wages are finally going up after many years of that not happening. But, ironically, markets don’t like wage hikes because that also makes interest rates go up and when interest rates go up the markets go down,” said Foroohar.
The DOW lost more than 665 points on Friday.
That dents corporate profits.
For you, that could mean higher interest rates when you go to buy a car or home.
If you rent, your landlord could put that cost on you.
When the market is down, the government lowers taxes to spark buying. It’s pretty obvious how that hits you.
The thing to remember is investors are selling stocks. Analysts say when you see your portfolio drop, you’re less likely to spend, businesses lose, hiring can stop and people can lose jobs.
However, could this be a long overdue pullback?
Stocks are still higher than this time last year.
The sell-off might not last.
“Wall Street and Main Street have been disconnected for a number of years now. We need a correction it’s natural,” said Foroohar.