Why Is The Stock Market Down This Week? August Has Been Tough For Traders

Key takeaways

• The stock markets have lost sizeable gains in August
• Inflation, the bonds market and China’s economic recovery are all factors in the global declines
• It’s too early to tell if this is a temporary blip or the beginning of a bear market

What’s happening with the stock market? After seven months of steady inclines, the S&P 500 has seen a quarter of those gains lost in just three weeks. It’s a turbulent time for what’s usually a quiet month, but a few factors are dragging down stocks.

The question investors have is whether the drop is temporary or if we’re heading towards a more significant decline. With domestic and international factors at play, it’s difficult to say what could happen next. Get ready for a breakdown of why the stock market has underperformed in August.