Home Finance The Stock Market May Drop on Friday the 7th

The Stock Market May Drop on Friday the 7th

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The stock market recently took a tumble into bear territory. More than 1,000 points dropped in two days. Now, stock futures appear poised to suffer losses. An anticipated jobs report comes out soon. If the job report proves underwhelming, the stock market could drop further. Instability in global trade already hampered the market. Additional undesirable news would create even more woes.

Job reports provide insights into the health of the economy. At present, things do not look even remotely positive. The Dow Jones, the S&P 500, and the NASDAQ all suffered declines. Predictions for December 7, 2018, suggest more drops.

The overall job market is relatively stable. Reports indicate robust wage growth. However, other factors currently hamper the market. The trade battle between the United States and China creates instability and ambiguity in the market. Tensions between China and the United States rose sharply this week after the arrest of a top Chinese technology executive. The exec was arrested in Canada per the request of the U.S. for violating recently re-imposed Iran sanction. China’s government authorities were furious over the arrest leading to further economic concerns.

China and the United States maintain a strong economic relationship. Both nations are reliant on one another — recent tensions over trade deficits and tariffs upended previous levels of stability. Things could work out to the benefit of both countries in the future. At present, the relationship suffers from a strain. The markets show the impact of strain.

Those unfamiliar with the economy may wonder why a U.S.-based company — one with no dealings in China — experiences a decline. The stock market cannot escape the laws of economics. Upheaval in the global market sends ripples through all publicly traded stocks. Just as a “rising tide helps all boats,” a declining tide can bring them down.

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