What you need to remember after biggest one-day drop in U.S. stocks
By WVUA 23 News Reporter Savannah Denton
TUSCALOOSA – U.S. stocks nosedived Tuesday, leading to one of its biggest one-day drops since 2020. The drop was sparked by a surprising inflation report showing prices rose more than expected last month. It led to fears the Federal Reserve would not be able to ease inflation without forcing the economy into an alarming downturn. The Fed is expected to raise interest rates again next week.
Alabama One‘s Director of Wealth Advisor Tyler Foster has advice for those worried about their investments.
“I’d say the first thing is stay invested,” Foster said. “The second thing is look at your plan. What does your plan say, where are you after a big drawdown? But also look at where you are throughout the year. We are also coming in at the end of the third quarter here, so it’s a good time to start looking ahead to the end of the year planning as well as where you’re currently at.”
It’s also important for people to keep a clear head about their investments.
“It’s still important to know where we’ve been and where we are right now,” he said. “So I’d say don’t make an emotional decision after a bad day in the market.”
Stocks closed modestly higher on Wall Street the day after Tuesday’s big loss.