If the US stock market falls to ground. It will be devastating to global economy instantly. Every stock market in the world will flow the fall. it can have a number of serious negative consequences for world economy and for the US economy and markets.
If it happen anyway, any day to US stock and exchange market. Then consumer spending will reduces. When stock market's stock prices is fall, investor's wealth to be declined. It will lead to a decrease in consumer spending, which is the driving force of the global economy to fall in days. Businesses in world may also be less likely to invest in new projects if they are worried about a recession. This can lead to slower economic growth and job creation may stop instantly. Millions of people may lose their job and business around the world may shutdown in months. It's not a easy thing as we talk everyday.
A fall in the US stock and exchange market can spread to global markets in days. This is because investors in the world hold US stocks as their reserve property.
The stock market fall can also lead to a decrease in risk appetite among investors around the world. This means many investors may be more likely to sell risky assets quickly, such as stocks and exchange market bonds, and buy safer assets, such as government bonds instead of company's share. US stock market fall can also lead to a weaker US dollar, Euro and other reserve currency. because investors around the world may sell dollars to buy gold in order to invest in local markets instead of stock and exchange market.
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