In this week’s 3Qs with news@Northeastern, D’Amore-McKim professor of finance Jeffery Born shed light on the Dow’s dramatic nosedive on Monday. As the writer Joe O’Connell put it, the Dow Jones Industrial Average “began its volatile roller coaster ride just moments after the opening bell on Monday morning, and finished the day 588 points down. Worries over a market slowdown in China had already affected markets worldwide on Friday.”
Professor Born explains the ties between global stock prices and the downward pressures exerted on U.S. stocks by China’s struggling market. He also takes note of currency values and the Chinese government’s efforts to increase exports.
“The stock market is a bit like a roller coaster,” Born adds. “There are plenty of ups and downs, but over the long run it generally rises.”