Shares Just Had the Worst Q2 Start Since 1929

Yesterday, a quick look through the list of US share CFDs available on our platform would have told you an interesting story. With two exceptions, all ended the day in red – not necessarily with huge decreases, but still.

If you feel like this has been happening a lot lately, you’re not far from the truth. According to Bloomberg, this has been the worst April start that stocks have experienced since 1929. In case you forgot your history lessons – this means the Great Depression.

Why is this happening? It depends who you ask. As is always the case with market trends, there are a lot of speculations and guesswork and very few concreate facts.

Here are some, possible reasons:

  • China’s change to its trade tariffs in retaliation to the equivalent US decision
  • President Donald Trump’s attack on Amazon regarding Postal Service, taxes and retailing
  • Facebook’s private data breach
  • It was reported that Apple could say goodbye to Intel
  • According to some people, tech shares simply rose too fast, and what we’re seeing now is a natural correction

 

Does this mean the trend will continue? Not necessarily, but again – it depends on who you ask. Some people – well, the bulls – claim that the upcoming Q1 earnings reports – now just around the corner – could change the whole picture, especially if they show earnings growth for the major companies.

However, the goals tech companies set for themselves were pretty high and if they fail to meet them… well, we don’t need to tell you what could happen.

At iFOREX, you can trade hundreds of CFDs including shares, commodities, indices, currencies and ETFs and can choose to short or long your position, potentially taking advantage of any price change – up or down.

 

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