The U.S. stock market has witnessed a huge sell off lately, which has led to a massive plunge in the stock market. As per the reports, the situation became worse after American Express Company (NYSE:AXP) faced a global sell-off.
Three Primary Causes That Resulted In Massive Plunge In Stock Market:
It’s been the highest fall that the U.S. stock market has witnessed in the last three weeks. American Express has been going through a difficult phase lately. If taken into consideration its performance over the last two years, the recent plunge of 4.4% is the highest since 2013. American Express failed to meet the market expectations in terms of quarterly revenues, which led to a global sell-off. Investors from all over the world traded heavily and sold out its shares, thus, it came down this much and affected the U.S. stock market badly.
Other than American Express fall, it was tightened trading rules in China and stronger inflation probabilities that left a reasonable impact on the U.S. Stock Market. All the 30 components of Dow Jones Industrial Average decreased, which resulted in more than 2.3% drop in 3M Co., Travelers Cos., and UnitedHealth Group Inc. Amongst all others, Advanced Micro Devices Inc., dropped 10% after announcing that it was difficult to say whether the second half would be substantially better than the first half.
The S&P 500 plunged 1.1% to 2,081.18 towards the end of the day and surpassed its lowest average price level in the last 50 days. The Dow lost 1.5% and touched 17,826.30 level while the gauge fell by 1%. The massive drop didn’t leave The Nasdaq Composite Index unaffected. As per the reports, it witnessed 1.5% plunge. The stock market witnessed trading of 7.1 billion shares on Friday, 6.4% higher than the average trading volume of the last three months.
