A gleeful Los Angeles Times reports that global stock prices sank Friday after the Dow Jones industrials on Wall Street plummeted more than 1,000 points, deepening a week-long sell-off.
Markets followed U.S. stocks down after the Dow, coming off a record high, entered a correction — or a 10 percent decline from its latest peak — for the first time in two years.
Financial analysts regard corrections as a normal event but say the latest unusually abrupt plunge might have been triggered by a combination of events that rattled investors. Those include worries about a potential rise in U.S. inflation or interest rates and whether budget disputes in Washington might lead to another government shutdown.
The booming stock market, spurred by President Trump’s tax cuts, has been seen by Democrats and the elite media as a problem. An upbeat economy dampens their political chances during the midterm elections.
The reality is that the markets have entered a periodic phase of profit-taking. It’s normal for investors. What’s not normal is to have a political party, and their allies in the media, root against American investors and workers.