Falling stock market prices are sparking concern about the U.S. economy and whether the country is heading for a recession. Monday, The Dow fell 700 points, S&P 500 fell more than 2%, and the NASDAQ slid almost 4%. Big name companies are losing even more. For example, Tesla stock fell 15%. So, we asked a local financial strategist about the potential impact.
RELATED: Dow plunges more than 1,000 points, Nasdaq craters as recession fears batter stocks
What caused the stock market to dip?
BOK Financial Senior Vice President Steve Wyett says the stock market dip is a result of President Trump’s tariffs on foreign goods.
“There’s just a slowdown in the overall level of business,” Wyett said. “That’s why we’re seeing the stock market decline.”
RELATED: What are tariffs, and how could they affect you?
Will my investments or 401k take a hit?
The short answer is, they could. Wyett says it’s possible folks could see some variability in their investment portfolio as the market recovers.
“This may just be a little bit of volatility and the potential for some downward pressure on stock prices,” Wyett said.
But, Wyett says ups and downs are part of the process.
“Stocks have moved like this in the past. They’re going to move like this in the future,” Wyett said.
Should people change their investment plan?
Wyett says it’s not time to panic.
According to the chief investment strategist, BOK Financial is not changing any of its long-term investment recommendations yet.
Instead, encouraging investors to stay the course.
“This is nothing that should make people change their strategy, particularly if we’re talking about retirement planning or other long-term investments,” Wyett said.
