PostHeaderIcon Factors That Influence The Stock Market

Stock Market IndexThe stock market moves either up or down depending on different factors. Among them may involve certain economic indicators as well as others that may have an influence on how the market may move. Here are just some of them:

Interest Rates

Interest rates seem to influence whether the stock market goes up or down. This may be because it may affect how investors will then have the means to buy shares. If the rates drop, stocks would likely be purchased which will then drive their prices up.

Political Events

What may be happening in a country politically may also have an effect on how the stock market will move. An upcoming election, terrorist attacks as well as other political events have an effect on market movement in one way or another. Most of the times, the effect may be negative if the events are also of the negative nature. It can bring the stock market down considerably.

Investor Sentiment

The current thinking of most investors may also have a considerable effect on the stock market. Along with other factors that they see, investors and traders may then try to make up their mind on how the markets may move in the following days. And when a general sentiment may be reached, this might affect how the market will move. Sometimes, emotions come into play with such sentiments and it is not usually the logical way that always results. This factor makes the stock market quite unpredictable most of the time.

Market Speculation

Another factor that might affect stock market movement would be speculation. Speculators usually try to determine what might be the next big stock in the future. Apart from certain indicators and factors, the general trend sometimes may help others determine what that next big stock may be. Where this speculation may lead investors and traders can also affect stock market movement as well as determine which sectors may be enjoying better trades and which ones may not.


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