Stock Market Volatility Could Hurt California Budgets—But Experts Aren’t Worried

Despite a couple days of losses, major stock indexes are still positive year-to-date, economic experts said.

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City on August 1, 2024. New economic data has caused renewed worries of a recession and a broad selloff in stocks. Jeenah Moon/Getty Images

As stock markets tumbled over the past two trading days, the threat of continuing losses cast a cloud over California’s future budgets. However, this year’s record market highs could provide a safety net, according to experts.

After the Dow Jones Industrial Average lost more than 1,000 points Aug. 5, the state’s Department of Finance said market volatility is not uncommon.