The US stock market has seen significant fluctuations, but overall remains flat.
In the past week, the US stock market experienced its largest fluctuation since 2019. On Monday, there was a panic sell-off in the market, followed by a strong rebound on Tuesday, another decline on Wednesday, and a continuation of the rebound trend on Thursday and Friday. Despite the roller coaster-like ups and downs, the US stock market remained basically flat by the end of the week.
The stock market and the crypto market are closely linked. Media discussions revolve around topics such as the U.S. recession and the unwinding of yen arbitrage trades, but this may be an overinterpreted "pseudo-issue". The real panic sentiment is very short-lived, and there has not been a typical crisis situation where all assets are sold off.
The US stock market has pulled back about 8% from its historical highs, but it is still up 12% compared to the beginning of the year. Considering the rise in bonds, investors with diversified portfolios are less affected by the decline in stock indices. Historically, there are an average of 3 adjustments of over 5% and 1 adjustment of 10% each year. If not accompanied by an economic recession or a decline in corporate earnings, stock market adjustments tend to be temporary.
Standard & Poor's