Nasdaq Stock Price Index (Nasdaq) is expected to drop more than 6% next week after the European Union’s ruling on Brexit caused it to fall below its two-year high of $20.70.
That could be a good sign for the U.S. stock market as investors take a breather and consider buying stocks outside of the stock market.
Nasdaq stock price index is currently below its 2,000 level, which is the point at which investors can expect the stock price to drop.
The Nasdaq has traded for about two months.
It closed at $20,867.50 on Tuesday and has been trading at a gain of nearly 10% since the Brexit ruling.
The stock market has also been in a bear market in recent weeks as investors have been unable to sell off their stocks and demand for stocks has continued to outpace supply.
Some investors have said that they are taking a break from buying stocks.
If the Nasdaq drops 6%, that could be the start of a very profitable year for the stock.
Investors will likely continue to buy stocks as they continue to enjoy the benefit of the tax cuts enacted by President Donald Trump and his Republican allies.
The United States is now expected to have more than $3 trillion in foreign assets, up from $2 trillion in 2017.
That number has jumped to $3.2 trillion, according to FactSet.
The Treasury Department said in November that it was considering a tax cut to offset the cost of the temporary tax relief.
It was expected to save the government $1.6 trillion over 10 years.