The share market has been struggling this year, with the Dow Jones Industrial Average and S&P 500 both recording their worst first halves in history.
Stock markets have had a rough year. The Dow Jones Industrial Average and S&P 500 are both down by double digits so far in 2021, with the S&P 500 recording its worst first half ever. With that in mind, here’s why the stock market is down and what investors can expect from the rest of 2021.
Why is the stock market down?
The stock market has struggled this year due to several factors, including rising interest rates, Brexit uncertainty and trade wars between China and other countries. The Dow Jones Industrial Average hit an all-time high on October 3rd before beginning a steady decline that continues to date. The major index fell more than 1,000 points from its high to its low point on October 24th before stabilizing for a few days. It then fell again on October 27th after news broke of Rishi Sunak’s budget announcement.
A number of factors have contributed to stocks falling this year. One of those is the Federal Reserve raising interest rates four times since December 2018.