Two Key Factors Tanking Stock Markets Today

US stock markets are very low today, with major drops across the top three stock market indices as inflation fears persist.


What is driving down the market today? The Dow Jones has dropped by 1.53%, losing an astounding 600 points. The S&P 500 is down as well, dropping 0.74%, followed by a drop from the Nasdaq Composite, which is down 0.39%.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewFMA, FSAUSD 50Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewCySEC, MISA, FSCAUSD 5Visit Broker >>
5Read ReviewFCA, CySEC, FSCA, SCBUSD 100Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewCySEC, FCA, FSA, FSCA, Labuan FSAUSD 100Visit Broker >>
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker >>

The markets are down considerably from where they were at the beginning of the week, reaching record highs. But a lot has happened since then. The FOMC meeting minutes on Wednesday confirmed what many feared- that inflation is still high and is showing little sign of easing. The 3.4% US inflation rate is far from the Federal Reserve’s goal of 2%, and the stock market is feeling the pinch as investors stay away from making risky trades.

The second contributing factor to the tight stock market is the recent report of retail sales. The new data shows that retail sales are down in the United States, with consumers spending less money as they try to save in a tight economy. Households across the country bought 2.3% less in April than they did in March, demonstrating a sharper decline than expected.

Stock Market Forecast

We anticipate a low stock market for Friday as trading opens. Inflation worries will likely drive the market for the next few days, at least, carrying into next week and keeping the stock market lower than it has been in a while. As more economic reports come in the next few weeks, the traders will have these two most recent reports in mind and will be timid in their trading, especially if new data shows a more dire picture.

A few stocks still have the potential to do very well, like Nvidia, which is high after a recent quarterly report showed that the company is doing better than expected and has a bright forecast for the rest of the year.  



Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Timothy St. John
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, Expert Business Advice, Tips, and Resources -, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.
Related Articles