U.S. Stocks Close Mixed as Market Comeback Rally Pauses

The foreboding words "stock market crash" began trending on Twitter early Wednesday morning leading to concern among people that a sudden recession was impending.

On Tuesday, the S&P 500 and NASDAQ opened and closed lower than it had in a week. The sudden drop led to some concerns from people that the market was headed toward a crash.

"The Nasdaq fell so much today that it is back to the level it was last Wednesday. #stockmarketcrash," Matt Stoller wrote on Twitter.

"U.S stock market in free fall as investors panic. Worst day on Wall St since the 'Covid Crash of 2020'," a Twitter user wrote.

Sign up for our free Indy100 weekly newsletter

Other people criticized President Joe Biden for celebrating the Inflation Reduction Act while the markets were seemingly free-falling.

"Sure glad Biden’s passed the inflation reduction act Today’s stock market crash showed how much confidence we have in it working," Jake Shields tweeted.

But the reality of the panic was a result of fear-mongering, according to other Twitter users.

One person pointed out that the stock market has been growing since 2020 when it experienced a crash due to the pandemic. Although there have been dips, it is still on the rise.

Another person reminded people that markets traditionally dip in September.

"Over the past 25 years, the S&P 500 has averaged a loss of 0.7% in September, according to data compiled by Bloomberg," an article forBloomberg says.

The September slump is believed to be correlated to a change in behavior due to seasonal change, reassessing portfolios and corporate budgets after the summer, and more.

Although the words "stock market crash" can be attributed to any dip in the stock market, most economists agree a true crash is a sudden double-digits drop that leads to a market-wide decline.

Have your say in our news democracy. Click the upvote icon at the top of the page to help raise this article through the indy100 rankings.

Please log in or register to upvote this article
The Conversation (0)