Panic on Wall Street after the crash of the Nasdaq index

Economy/International

22-01-2022, 17:57

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The American Wall Street stock market witnessed a wave of panic last week after the sharp decline in the Nasdaq index, which prompted investors to wonder whether the markets will be satisfied with a correction process or if they are on the verge of a long downturn that carries risks for the economy and for the administration of Joe Biden.

The Nasdaq index of technology companies collapsed more than 15% from its last record in mid-November, which certainly puts it in the margins of correction, marking its worst month since October 2008 in light of the financial crisis.

As for the Standard & Poor's 500 index, which represents the US market as a whole, it has fallen by 8.3% since its last peak at the beginning of the year.

Shares of Netflix, the most popular on Wall Street, witnessed a sharp decline, reaching 21.79% on Friday, and fell to about $ 400 per share after reaching the price of $ 700 in November, which raised major fears and began spreading anxiety among small shareholders who rely on their retirement savings plan. Investor in the stock exchange, known in the United States as "401K".

One netizen complained, "Your 401K is probably 40% lower than it was three months ago, I'm 65 and I don't have time to rebuild myself. Thank you, Joe Biden."

Another wrote, "People are losing big on their 401K plans, the wallet decides the elections, so expect a big defeat for the Democrats."