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The S&P 500 index's decline expanded to 7%. Why did the US stock market continue to plummet?

U.S. stocks were once very glorious, especially at the beginning of this century. After all, U.S. stocks at that time were very famous for their stability. And it was once very glorious. But in the past few days, we have seen that U.S. stocks have begun to plummet. The reason for this is actually very simple. First of all, if we make a metaphor for the U.S. stock market, we can use a glass of beer as a metaphor. Secondly, since the United States began to engage in virtual economy in the 1980s, such as real estate, financial industry and service industry. Finally, as for U.S. stocks, if the worldwide epidemic is not well controlled and the oil price war cannot be stopped, then U.S. stocks will still be greatly affected.

First of all, if we make a metaphor for U.S. stocks, we can use a glass of beer as a metaphor. If the entire US stock market is a glass of beer, the industry is equivalent to the beer in the quilt. If you keep pouring beer into it, the foam will start to grow more. But when we stop pouring beer, the foam will inevitably fall back.

The second is that since the United States began to engage in virtual economy in the 1980s, such as real estate, financial industry and service industry. In fact, the advantage of doing this is that it will make the environment in the United States better and the people's living environment and living standards better. But many industries began to collapse in that era. The so-called industry was manufacturing. The manufacturing industry is not very supported by the state, so this has resulted in the U.S. economy actually being maintained by a very small number of industries.

Finally, as for U.S. stocks, if the worldwide epidemic is not well controlled and the oil price war cannot be stopped, then U.S. stocks will still be greatly affected. After all, the epidemic has caused a worldwide shutdown of work and production, causing the United States' already small manufacturing industry to begin to shrink. So if the epidemic is brought under control, U.S. stocks will start to rebound.