Why do stock markets around the world fall when the NYSE falls?

Carefree: Why do stock markets around the world fall when the NYSE falls?
Why does one major stock market crashing cause other stock markets around the world to fall too?

Also, is the Dow Jones the world’s most influential stock market?

Answers and Views:

Answer by answers2questions
Dow Jones is an index, not a market. It is an average of several representative stocks that reflect the overall valuation of the market. A high DJ index means confidence is high, and people are paying more for stocks. A low index means people are holding onto their stocks and not buying.

Basically, all the markets are connected. People who are doing well in one market will try to buy stocks in another market. When they’re not doing well in the NYSE, they can’t buy stocks in other markets either, and the prices there drop too.