Covid-19 is a term that will not be heard outside the world of stock trading, but it’s one that can have a really big impact on the stock market and the recent “stocks sinking” news.
This is because covid-19 affected not only the US market but also the world.
When COVID comes into play, it can mean big gains or big losses for the stock market.
That’s why it’s important to understand covid-19 and what it means for your stocks.
Stocks sinking, cryptomarket follows
The stock market was hit on Friday as investors were uncertain if the latest coronavirus variant could potentially reverse progress made at containing the COVID-19 pandemic.
The S&P 500 index dropped 2.3%, to 4594.62, its worst day since February.
Bitcoin followed and drop a staggering 20%.
The stock market has been on a decline for the past few years and many experts and analysts have been looking for reasons other than COVID for this decline.
The US STOCK market experienced a historic downturn in recent times, with DJIA losing 2000 points since its peak on January 26th.
Some people are still wondering what triggered this collapse. Some are blaming the trade war between the US and China. Others are blaming “Black Monday”.
On Friday, it is evident that COVID still has a strong grasp on not only our lives but also on the global market.
Natural respond from investors
Many analysts predicted that whenever there is a major COVID news such as a new variant, there will always be a major impact on the stock market.
When such news arrives, Investors tend to react to fear and dump whatever stocks they have on hand.
When stock prices start sinking others will start to follow like the butterfly effect.
This applies to both the stock and crypto markets.