Stocks Rocked After Fed Speculation

The United States stock market had its second worst day of the year on Friday, September 9th. This came after comments from the U.S. Federal Reserve that indicated that there was a chance that they would raise rates in September. This, along with actions by the European Central Bank just a few days beforehand, prompted panic in the U.S. markets as investors sold off their shares and try to protect earnings just in case the Fed actually does raise rates.

The worst day of the year was the day after the referendum where England decided to leave the European Union. This was a kneejerk reaction, and stocks were completely recovered within a few weeks. This is a very different situation, and the Fed does have quite a bit of influence over the stock market. When there is a rate hike, it almost always impacts stocks negatively. This impact can last for extended periods of time, or it can be a quick and painless drop in price where stock prices bounce back up very quickly. Read more “Stocks Rocked After Fed Speculation”