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Red numbers and accounts: Leading stock index is experiencing worst month since financial crisis | Money | The DR stock index Nasdaq fell by 13.3 percent in April. In April, the share index experienced a total decline of 13.3 percent, and one must therefore 14 years back in time to have experienced something similar. markets.Many large companies are joint stock companies. That is, they are owned by those who own shares in the company. If you buy a share in a company, you become a co-owner of it. This gives you a share in the company's profit, which is called share dividend. Shares have a market value. This is the price you pay for a stock. The share price is an expression of whether there is confidence that the company is doing well and will give a high share dividend. But the price is also affected by other things. For example, how the world economy is developing. And whether interest rates on loans rise or fall. Many shares are bought and sold on stock exchanges. In Denmark, it takes place on the Copenhagen Stock Exchange. Here, the price - the selling price - is set day by day. If the company performs well, the price of the company's shares rises because many want to buy them. If the company performs poorly, the price falls. Buyers are holding back because they fear the stock will not pay dividends to shareholders. This is what Per Hansen, investment economist at the bank Nordnet, says. One of the reasons is that the US Federal Reserve has interest rate increases - large interest rate increases - in the near future. - We have been accustomed to a supportive monetary policy with low and falling interest rates, which has meant that many have risen in the last 10-12 years. - But now the US Federal Reserve has changed its mind. Now the central bank is saying that interest rates should rise. And it has to rise a lot. This means that earnings in the stock market will be lower, which is why the stock market began to fall in early 2022, says Per Hansen. For the first time since 2018, the US Federal Reserve raised interest rates in mid-March. Here, the interest rate was raised by 0.25, so that the interest rate is now in the range of 0.25-0.50. But further interest rate increases are on the way. In May, the US Federal Reserve is expected to raise interest rates by 0.5 percent, says Per Hansen. - The US Federal Reserve has also signaled that interest rates are expected to rise by two more within the next 12 months. © Ritzau Scanpix talk of inflation if there is a general rise in prices and not just on a single commodity or service.This means you can buy less for your money than you could yesterday.Source: The European Central Bank- It has got investors to to fear that interest rates will be raised so much that the central bank steers the US economy towards negative in 2023. The US economy has probably already declined markedly in growth gear. This is roughly equivalent to having a car that is already going down a lot in gear, and then you step hard on the brake. This makes investors nervous. The prospect of rising interest rates in the US is thus one of the reasons for the fall in the price of the Nasdaq index, according to Per Hansen. keep track of, explains the investment economist. But the US Federal Reserve should have done so earlier, he believes. - The US Federal Reserve has two. It must control price development, and then it must stimulate the economy. - But for far too long, the economy has been supported without making sure that it has been possible to control. And now the risk is getting a little out of control. That is why they have to raise the price of money, and they do this by raising interest rates, says Per Hansen. Another reason why the stock index Nasdaq has had its worst month since the financial crisis is that Disappointing accounts from US technology giants have recently come in. USA's most valuable company, Apple, on Thursday a higher turnover than expected for the first time in 2022. But at the same time, the company warned that problems with supply chains and factory closures in China could cost the tech giant up to eight billion dollars in the second .It caused Apple's share to fall by 14 percent according to the Financial Times.Same day Amazon its first quarterly loss since 2015, while the streaming giant, which was worse than expected.The accounts showed that the company has lost 200,000 paying users in the first year - contrary to expectations, which were 2.5 million more customers. This subsequently caused the Netflix share to plummet by around 36 per cent. and adds that the Netflix share has fallen a little over 70 percent from the highest level seen in 2021. The question now is how long stock prices at home and internationally will continue to rattle down.According to Per Hansen, investors "have certainly gotten a surprise ", and he believes that stock prices may continue to fall a little more. What is happening in the US can not avoid spreading to the Danish economy and the Danish C-20 index. Per Hansen, investment economist at Nordnet easily continue. But if that happens, then I think it's going to happen at a completely different and somewhat more subdued pace. - I think investors will find a new and better starting point so that stocks can rise again in a few months. believes that the level of the Nasdaq index has been artificially high in recent years - about 20-25 percent too high. - Although the level can fall by 20-25 percent, some can easily fall by 50, 60 or 80 percent, says Per Hansen and continues: - The USA is the world's largest stock market, and therefore it also has great significance for us Danes what happens over there. What is happening in the USA cannot avoid spreading to the Danish economy and the Danish C20 index.