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U.S. Stock Market Correction: Causes and Effects

Alexander Abramov – Head of Department for Analysis of Institutions and Financial Markets, Institute for Applied Economic Studies, Russian Presidential Academy of National Economy and Public Administration, Candidate of Economic Sciences. Е-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

The U.S. stock market entered a major correction on 2 February 2018, impacting most of the markets worldwide. Stock indices plunged as volatility increased. The correction was spurred mainly by the U.S. stock market overvaluation as well as concerns about inflation spike in the United States. Yet, there are no signs of a system-wide crisis.

Key words: US stock market, EU stock market, markets correction.