The Dow Jones closed lower on July 27, 2023, ending a long winning streak since 1987. It fell 237 points to 31,272. The S&P 500 and Nasdaq Composite also dropped.
The stock decline was due to Japan’s rising interest rates and higher U.S. yields. Inflation concerns and the war in Ukraine also weighed on stocks.
The 13-day winning streak ended as investors analyzed economic data and corporate earnings. U.S. economy grew at 2.4% in Q2, beating expectations, but inflation reached 8.6% in May.
The stock market outlook is uncertain. Some see the sell-off as a healthy correction, while others fear a significant decline as the Fed raises rates.
Time will reveal the market’s reaction to these developments. The sell-off reminds investors of the risks in the bull market.
