Continuing Problems: the economy what was the economic impact of sept. 11th on the stock market? why?

Expert Answers

An illustration of the letter 'A' in a speech bubbles

The 9/11 attacks did make the stock market drop quite a bit, although nothing like the stock market dropped during the financial crisis that hit at the end of 2008.

The reason that it dropped to some extent was the uncertainty over what was going to happen next.  Businesses really...

See
This Answer Now

Start your subscription to unlock this answer and thousands more. Enjoy eNotes ad-free and cancel anytime.

Start your Subscription

The 9/11 attacks did make the stock market drop quite a bit, although nothing like the stock market dropped during the financial crisis that hit at the end of 2008.

The reason that it dropped to some extent was the uncertainty over what was going to happen next.  Businesses really need certainty, or as much of it as they can get.  When they do not know if there will be a war, or what will happen to the price of oil, they are not happy.  Investors worry about how businesses will do in such a climate and stocks drop.

So stocks dropped for a while as investors waited to see what would happen next.

Approved by eNotes Editorial Team