Why is the stock market going down?

Answer by  StingRay (471)

People defaulting on house loans and the increased gas prices sparked the downward spiral. With the housing industry failing and everyone raising prices to compensate increased fuel costs, the consumer had to pay more for the same amount of goods and started spending "less" which led to buisnesses losing revenue.

Answer by  Gabriel (2146)

That is the million dollar question. Most analysts agree that the market was overinflated at 14,000 and the drop was a necessary correction. Others feel that the unethical behaviors of some brokers drove stock prices up, then when the market corrected, they could make a killing with limit contracts. It'll take years for economists to find out what happened.

Answer by  Shankalot (484)

The stock market always has its ups and downs, but in times of uncertainty the market may go down because traders and investors just don't know what will effect the economy next. When confidence in the economy is down, stocks go down.

Answer by  vikkyrs (377)

The stock market may go down because of any reasons. main reason behind this is inflation. even the price hikes of petroleum products also have adverse effect on stock market.