US investors could take a hit of $9 trillion in stock market crash -

Washington: Leading US financial institution JP Morgan warned, ‘The crash in the US stock markets has caused a loss of a whopping $5 trillion to the investors. Cumulative losses till the end of this year could reach up to $9 trillion.’ US stock indices Dow and Jones, S&P500, Nasdaq and Bloomberg Index have crashed by 16% to 48%. There is a possibility of a further slide given the rising inflation and recession fears.

Since the last few weeks, a consistent fall has been reported in the US stock markets. Even at the end of last week, the main stock indices declined anywhere between 2% to 3%. The fall has hit everyone from the smallest to the biggest billionaire investors. The net worth of leading billionaires Elon Musk and Jeff Bezos has reported a decline of nearly 40%. Stocks of the Tesla company of Elon Musk have declined by 45%. Whereas, stocks of Amazon-owned by Bezos, have reduced by 37%.

The leading US index Dow Jones has declined by 16%. Whereas, S&P500 has recorded a fall of 20%. Nasdaq has crashed by 27% and the Bloomberg Index of Cryptocurrencies has crashed by a whopping 48%. Long term decline in the stock prices is referred to as the ‘Bear Market’. From past experiences, this is a phase before the recession starts.

Inflation has reached 8.5% in the United States and the economic growth rate also took a hit in the first quarter of the current fiscal. Economists and analysts claim that the United States could be hit by recession in the next few months. The record crash in the stock markets and the losses incurred by the investors only endorse the claim.