Stock Markets Exposed

Why does the U.S. stock market decline (dow & nasdaq) also affect other markets?

Public Comments

1. i wouldn't look at it that way... just because the dow declined doesn't mean the Nikkei will.... However... the cause of the Dow's decline will have a global impact because we are the largest economy in the world... most other countries will at least indirectly suffer if we suffer. So when credit fears and housing market concerns cause the dow to sell off due to fears of low consumer spending... Countries around the globe that sell to our consumer will suffer as well... since we wont buy as many Toyota's or Sony tv's or shirts from china... etc etc etc. its often hard to distringuish the symptoms from the causes.. but in this case i'd say your looking at two symptoms from the same cause.