Why the stock market fell in the USA, Japan and other countries

🌡️ Stock market crash in August 2024: why did the stock market fall USA, Japan and other countries?

🔻 Shares of the world’s leading companies are falling, the stock market in the USA, Japan and many other countries is crashing – such headlines in publications make many investors grab their heads. The mood is no longer just one of concern, but of real panic. Such a sharp and rapid collapse in the stock market as in August 2024 has really not been observed for a long time.

⚡ Why did the US stock market fall today? and a number of other countries, what does this collapse affect?, and whether to expect an unthinkable collapse further – we’ll talk about all this in today’s material.

💣 Stock crash concept

A stock market crash, referred to in professional circles as a stock market crash, is a sharp and rapid drop in prices for company shares and other assets. Typically, various economic factors, as well as panic among investors, lead to this phenomenon. This phenomenon can cause significant losses.

Stock market crash today affects many other markets, such as cryptocurrency. The timing of low stock prices depends on the level of general panic and the severity of economic turmoil.

👇 But does the stock market crash in the US, Japan and other countries that took place in August 2024 amount to a real crash? Let’s look at the reasons for the current price drop.

📉 Reasons for the stock market fall in August 2024

On reasons for the stock market crash today in August 2024 the following:

• ❎Shaking the economies of strong countries. In the USA, Japan, China and the countries of the European Union, a certain crisis in the economy has been noticed. In America, there were general concerns about a recession and rising unemployment.
• ❎Increase in interest rates. In the policies of Central banks, in particular Japan and the United States, there was a clear tendency to increase interest rates in order to overcome possible inflation and prevent collapse. So borrowing became more expensive, which slowed economic growth.
• ❎Low corporate income. In the reports of many companies, one can trace a significant decline in profits for the second quarter of this year. This prompted wariness among potential investors, and companies themselves began to reduce the price of their securities, worried about the profitability of the business.
• ❎Instability in global geopolitics. Serious “swings” in relations between countries and emerging conflicts, for example, in the Middle East, aggravate the value of trading volume on exchanges. Such periods are accompanied by uncertainty in the investment sector.
• ❎Low purchasing power. The economic crisis also affects the pockets of potential investors, and their purchasing power sets the tone for the markets.

All these factors influenced the sentiments of investors, who began to sell assets, fearing a further deterioration of the economic situation in the world. Now stock exchange indices are characterized by significant volatility. A money back is becoming an increasingly popular service among financial specialists on our site.

🌎 The situation with the fall of the stock market in some countries

To better understand the causes and level of the 2024 stock market crash, it is enough to take a more detailed look at the situation in specific countries.

Japan

The stock market decline in Japan reached a level of 25%, if we count it from July 2024. For this country, such a fluctuation is not a frequent occurrence. Therefore, by inertia it also caused a decline in stock exchange trading in other countries.

Japan has become the epicenter stock market crash today. Tokyo’s Nikkei stock exchange posted one of its worst falls since 1987.

USA

The decline in the S&P500 index by as much as 10 percent, and in total for 2024 by as much as 30%, was one of the first blows and is the root cause, Why did the American stock market fall?. Many stocks on the NASDAQ stock exchange have fallen in price by up to 40%. For example, Nvidia’s share price dropped to $90 from $140.

India

Indian stocks posted some of the biggest declines. For example, the NSE Nifty lost over 2.5% in price and the S&P BSE Sensex lost almost 3%.

🎬 When will the 2024 stock market crash end?

Of course, no one can specifically predict the end date of the 2024 stock market decline. But there is no doubt that this will invariably happen. The stabilization of stock market indices of the world market may be influenced by the following factors:

• Stabilization of the world economy. Strong decisions and competent behavior of strong world countries should become a fundamental impetus for the restoration and growth of the entire stock market.
• Stopping rising interest rates. If the policies of central banks, such as the US Federal Reserve, slow down the pace of interest rate increases, this could “liberate” the economy from oppression and open the door to investment in the stock market.
• Resolving geopolitical crises. With global politics stabilizing, armed conflicts being prevented and global business functioning, we can expect a significant boost to stock prices.
• Adaptation of the technology sector. Stabilization actions in the technology sector can play into the hands of companies, adapting them to the new realities of the current state of affairs. As a result, company shares may rise in price.
• Market support by national governments. If decisions are made taking into account common interests, then there is every chance of a speedy recovery of the global stock market.

In any case, every collapse ends sooner or later. Crises don’t happen all the time.

🔈 Analysts’ opinions

Well-known economic analyst Harry Dent sees a protracted period in the current market collapse. His opinion is that the entire market was oversupplied and the corrective price movements taking place became a necessary phenomenon. He is extremely skeptical. But there are not many people like him, compared to optimists.

For example, analysts at Capital Economics stated that even if the market continues to fall, this is an excellent opportunity to buy assets on the cheap. In 2025, he certainly believes that the market will stabilize.

The most important thing is that most experts agree that it is premature to talk about a recession. Many believe that the economy will stabilize and investors will become more relaxed.

👨‍💻 What to do if the stock market crashes today?

As I said Benjamin Graham – “Wealth is determined primarily not by the results of investments, but by the behavior of the investor.”.

This quote perfectly characterizes the current situation, when many panicked and sold shares at a loss.

First of all, with the current collapse of the stock market on world exchanges, one must remain calm. It is important to sharpen all strategies to minimize risks and maximize the protection of your investments.

Expert advice

1. 💡Don’t panic. The very first thing is not to make hasty decisions, which, in the conditions of a sharp market collapse, are asked of fragile investors. It is important to remember that cutting losses now can prevent you from maintaining and increasing your investments later.
2. 💡Diversify your portfolio. Properly distributing assets in a portfolio is an art and an essential element of behavior in the stock market, especially during its decline. If one or more assets fall sharply, others can help you avoid going into a serious loss.
3. 💡Opportunities. A stock market crash makes it possible to buy shares at a very favorable rate, because in the future it will most likely recover and bring profit.
4. 💡Long term. When playing their game on the stock market, smart investors plan a strategy for the long term. It is the market collapse that is ideal for building such a model with the greatest income potential.
5. 💡Consultation with a financial advisor. When there is increased volatility and uncertainty in the market during a collapse, it can be extremely useful to contact a professional. Finding a financial advisor and trusting in the competent construction of a behavioral model in the current conditions is the key to peace of mind and confidence. A specialist can correctly assess the risks and propose the most favorable financial model for achieving goals.

🤝 Need help?

If you are serious about emerging victorious from the stock market decline, you should immediately use all the tips that are described in today’s article. To minimize all risks of losses and maximize the possibility of potential income, it is best to immediately turn to the last point in the expert advice above. The help of professional consultants is what you need when the stock market collapses.

Don’t let artificial factors affect your profits, don’t let events lead your portfolio to losses – write to our specialists right now! We have already helped dozens of successful investors maintain their investments and increase them even in times of crisis. Join them and you will be among the winners!