In the case of a stock market crash, the value of stocks drops sharply due to investors selling their shares rapidly. Consequently, that drives down the value of stocks for other shareholders, who also attempt to trim their losses by selling their shares.
For Wall Street, China has been a headwind each year for the past two. Two years ago, the world’s second-largest economy entered a trade war with the U.S. Regulators began cracking down on technology firms last year, raising concerns.
Day-to-day politics doesn’t usually affect investors. However, the November midterm elections can have a tangible impact on businesses moving forward, which explains the current political breakdown in Congress.
The stock market makes money over the long run, and the cryptocurrency market has been flooded with speculators lately. There is a new level of FOMO (fear of missing out) after seeing Bitcoin gain 8,000,000,000% in a little over 11 years, and Shiba Inu gain 46,000,000% in 12 months.