Global stock down as markets respond to historic Wall Street drop

Global stock down as markets respond to historic Wall Street drop
(FOX 8 Photo)

NEW ORLEANS (WVUE) - Stock markets around the world are opening at a loss Tuesday morning.

They are responding to a historic drop on Wall Street Monday. Investors are hoping for stops and rebounds.

Ironically, good economic news could be to blame for the drops.

The January jobs data released on Friday showed wages in the U.S. are growing at their fastest pace since 2009.

This has led to fears that inflation, which has been unusually low in recent years, could be about to make a big comeback.

When interest rates rise, stocks often all because those higher rates eat into corporate profits.

The Federal reserve, which is in charge of those rates, had a new chairman sworn in Monday. It remains to be seen what polices he will keep or change.

Despite the record drop, analysts said there is no reason to panic just yet.

The Stock Market has essentially been growing non-stop since November 2016.

To put this into perspective, The Dow closed Monday just above 24,000. It was just two weeks ago that it reached 25,000 points for the first time.

Essentially, The Dow is back to where it was just about two months ago.

If historic drops become consistent, concern may be warranted.