Reasons behind the US stoke market decline at the end of 2018
Since the last October US financial markets witnessed a serious decline due to several factors:
The US Federal Bank raised interest rates that is cost of money become bigger and the period of quantitative facilitation ended, which was the main reason behind company profits.
Trump also criticized reserve Federal chairman Jerome Powell and accusing him of harming the economy and raising interest rates.
The reason behind the slowdown in Chinese economy is the war between US and China as the data showed a decline in the Chinese industry sector and this has caused many problems for US because companies such as Apple, has decline it’s sales because it’s sales depends on Chinese market .
Global economic slowdown where the European financial market witnessed retreat because of the Brexit , disturbance in France , Italian banks crisis and emerging markets crisis.
Partial government shutdown and lack of agreement between US president and the Democrats on financing the border wall with Mexico.
Trump disagreement with the Federal government and the decision of stop the salaries of 800 government employees as a disagreement with the Congress for refusing provide funding for the wall.
The biggest decline was in the technology sector the most risky, company’s results in the last quarter
72 companies gave negative instructions and 34 companies gave positive instructions revenue growth was 5.6% but the profit growth was because of tax decline that had the greatest impact.