Investor Panic: Understanding the Sudden Fears in the Stock Market

Market losses have been piling up over the past month, as growing fears of contagion from an economic slowdown in China, inflation concerns, geopolitical tensions, and weakness in American banks have spooked Wall Street. The S&P 500 is down nearly 5% this month, and the Nasdaq has dropped by 7.7% in August. The CNN Business Fear & Greed Index, which looks at market sentiment, is showing signs of fear for the first time since March. In this article, we will delve into the main factors contributing to the market turmoil.