The reason for such a sharp decline is that there was too much optimism before, and the leverage liquidation is also an important reason. Many people have seen that stock markets in various countries around the world are collapsing, and they can't help but start to fantasize whether the US stock market will also collapse.
It should be clear that the US stock market is the most core market on this planet.
The differences between him and the markets in Japan, South Korea, and Europe are quite large. The US stock market has more options to play with, and its liquidity supply mechanisms are more diverse and complex.
In the case of the Gulf conflict, Americans can directly manipulate it, and more than half of the countries in the world can effectively drive funds back to the US, providing support for dollar assets.
The continuous strengthening of the US dollar index is the most direct signal.
I have previously emphasized that creating such localized conflicts is an antidote to dollar assets and a poison for the related local markets.
However, if the crisis lasts longer, the US stock market will not be safe either.