The United States stock market continued on a downward path Thursday and the outlook wasn't looking good for investors. What started earlier in the month was continuing as the new year approached.
Wednesday night the Dow closed at 23,323.66 and by 12:42 a.m. EST Thursday had dropped even more to 22,989. The NASDAQ closed at 6,636.83 Wednesday night and was at 6,521.87 by Thursday at 12:39 p.m.
Both have suffered dramatic decreases through the month of December as the entire stock market has been taking a hit. Both the Dow and the NASDAQ are at are having their worst December in years.
The Federal Reserve has seemed to be playing a role in the changes in the market. Wednesday the Fed announced that the economy in the U.S. is actually slowing and its plan for interest rates next year, The Washington Post reported.
The latest increase in rates was a quarter point bringing the rate from 2.25 to 2.5 percent, one of the highest in recent years. The increase makes it more expensive for those looking to borrow money to do so. All 10 of the Fed leaders voted for the increase, The Washington Post reported, and the next meeting is scheduled to happen on January 29 and 30.
The result is that investors actually seem more concerned about the well-being of the economy than the Fed and that concern is reflected in the market. In the day following the announcement from the Fed the price of stocks continued to fall.
A survey from CNBC revealed that the chances of there being a recession next year were higher than they'd been previously during the Trump Presidency. The survey polled 43 people in the financial market from economists to strategists and found that a quarter of those respondents were bracing for a recession.
The survey also showed that those who participated also believed that the rate hikes from the Fed would be a contributing factor to the cause of the recession. During a recession, the economy would typically either shrink or stop growing altogether.
Also hurting stock prices Thursday was the possibility of a government shutdown. Following a showdown with Democrats this month, it appeared Trump was going to cave and sign a spending bill without funding for a border wall. However, multiple reports Thursday said the president may veto the bill.
If there is no bill in place, the government will shut down at midnight on Friday.
