The Stock Market
After climbing more than 25% between January and July 1997, the S&P 500 index swung widely over the balance of the year. A sharp drop in stock prices on October 28 marked the largest single-day decline since October 1987. Within a month, however, the market reversed the loss. This recent increase in stock price variability was triggered by the heightened uncertainty associated with turmoil in Asia’s financial markets. The Nikkei 225 stock price index in Japan, for example, has fallen about 25% since midyear.
Suggested citation: “The Stock Market,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-01, pp. 05, 01.01.1998.