A falling stock market doesn’t cause a recession on its own—but it can help push the economy into recession territory. It's the reaction to the market, not just the market itself, that matters.
Consumer spending powers the economy. As market losses close businesses and threaten citizen's investments, savings, retirement accounts, consumers will slow spending to just the essentials for life. This will close more businesses. At the same time, shortages of many goods not made in the US will create hoarding and raise prices on available goods (inflation). This will create more panic and contraction of spending and growth. There are hard time ahead, I think.
Consumer spending powers the economy. As market losses close businesses and threaten citizen's investments, savings, retirement accounts, consumers will slow spending to just the essentials for life. This will close more businesses. At the same time, shortages of many goods not made in the US will create hoarding and raise prices on available goods (inflation). This will create more panic and contraction of spending and growth. There are hard time ahead, I think.