The reasons for a sharply decline in US stock market this Tuesday?

Answer 1

Stocks had shot up pretty fast in the two weeks before. It mostly was a panic sell off after the Japanese market slid down quite a bit. People figured they'd be safe to go ahead and take profits from the two weeks prior.

I'd say look for most of those stocks to rebound or better before the end of March.

Answer 2

yes- the Chinese scandal led to the mini crash, as noted by the Wall Street Journal. But you have to look at the bigger picture- the CPI rose 2 weeks ago which led analysts and critics to throw up their arms-- then came Bernanke - the 5.25 Fed Funds rate may not stay for long.. with worries of inflation still looming over us. and our trade deficit just hit another high.. all these things considered- while the Chinese rumor may have been the first domino to start the chain reaction- there are other things to consider

Answer 3

Actually it was due to a 9% drop in the Chinese stock market, which was spurred by fears that the Chinese government would create a capital gains tax (the rumor has since been denied).

Answer 4

I've seen this question alot (naturally), and there is no "one" answer. The thousands of people in the financial markets trade hundreds of billions of dollars each day. Any explanation would need to be incredibly complex, and even then I don't think it will be complete. For an overview, however, I suggest reading http://www.valuestockreports.com/022707.htm