Stock market current events
Your browser is not supported. Log In. Account Preferences Newsletters Alerts. Access insights and guidance from our Wall Street pros. Find the product that's right for you. Get the latest stock market news and analysis from the floor of the New York Stock Exchange.
Five Factors or Events that Affect the Stock Market
Stock markets can be volatile, and the reasons particular stocks rise and fall can be complex. More often than not, stock prices are affected by a number of factors and events, some of which influence stock prices directly and others that do so indirectly.
According to stock market guru Peter Lynch, an important point to remember when investing is that "there is a company behind every stock and a reason why companies — and their stocks — perform the way they do. Developments that can occur within companies will affect the price of its stock, including mergers and acquisitions, earnings reports, the suspension of dividends, the development or approval of a new innovative product, the hiring or firing of company executives and allegations of fraud or negligence.
Stock price movements will be most drastic when these internal developments are unexpected. Company stock prices and the stock market in general can be affected by world events such as war and civil unrest, natural disasters and terrorism. These influences can be direct and indirect, and they often occur in chain reactions.
The social uncertainty and fear generated by the terrorist attacks on Sept. An example of an indirect influence on markets is the announcement of a new military venture by a country in response to the outbreak of civil unrest or conflict abroad. This announcement likely would cause the price of the stocks of military equipment and weapons manufacturers to rise due to an expected increase in defense contracts, which in turn can raise the value of stocks for companies that supply military equipment parts and technology.
It likely would raise the demand for, and price of, natural resources used to make these parts, which would raise the price of stocks representing particular mining and natural resource processing companies. One of the more predictable influences of the stock market are periodic adjustments of interest rates by the U. Federal Reserve to combat inflation. When interest rates are raised, many investors sell or trade their higher risk stocks for government-backed securities such as bonds to take advantage of the higher interest rates they yield and to ensure that their investments are protected.
Foreign currency rates have a direct impact on the price and value of stocks in foreign countries, and changes in exchange rates will increase or decrease the cost of doing business in a country, which will affect the price of stocks of companies doing business abroad.
While long-term movements in exchange rates are affected by fundamental market forces of supply and demand and purchase price parity, short-term movements are driven by news, events and futures trading and are difficult to predict. Stocks and the stock market also can be affected by hype about a company or the release of new products or services. Many people and organizations have an interest in promoting particular stocks and industries to increase the value of their own shares and profits, and positive financial reports and stock market newsletters, Internet blogs, press releases and news reports can build high expectations for the performance of companies, which will raise the price of their stocks.
This can occur even when the hype has no foundation in truth; investors are wise to consider people's reaction to hype rather than analyze the merits of the positive promotion. Hype and its opposite can be advanced by respected stock market authorities such as Warren Buffet, Peter Lynch and hedge fund investor and financial speculator George Soros; such is the respect given to these individuals' skill and past success that they sometimes can affect the movement of markets by simply suggesting that developments might occur.
Based in Ottawa, Canada, Chris Wolski started writing professionally for non-governmental organizations in He has written communications material for marketing firms and small businesses, and he has published articles for various websites. Wolski received a national coaching certification in and a Master of Arts in political science from York University in Skip to main content.
About the Author Based in Ottawa, Canada, Chris Wolski started writing professionally for non-governmental organizations in Wolski, Chris. Small Business - Chron. Note: Depending on which text editor you're pasting into, you might have to add the italics to the site name.
In-depth market analysis, real-time stock market data, research and earnings Art Cashin says the recent stock market bounce is premature — and here's why. Follow the latest Wall Street Journal news on stock markets, finance, banks, hedge funds and private equity, with quotes for stocks, stock indexes and ETFs.
Note: If you are running Internet Explorer 10 and above, make sure it is not in compatibility mode. Five reasons the stock market is soaring as the economy is floundering: from buoyant tech stocks to high earnings hopes to fear of missing out. The coronavirus pandemic has delivered a gut punch to the economy, and the mortgage market is particularly exposed. As with all businesses lucky enough to enjoy a bump from the coronavirus pandemic, the natural question is where does the action settle once stay-at-home orders ease.
Stock markets can be volatile, and the reasons particular stocks rise and fall can be complex. More often than not, stock prices are affected by a number of factors and events, some of which influence stock prices directly and others that do so indirectly.
Sign up for free newsletters and get more CNBC delivered to your inbox. Get this delivered to your inbox, and more info about our products and services.
Stock Markets
Skilled active investment managers now have a huge opportunity to add value, writes Mark Hulbert. Ridesharing company Uber boasts competitive advantages, writes Vitaliy Katsenelson. This market yardstick with a strong track record sees U. Warren Buffett announced on Saturday that Berkshire Hathaway unloaded all of its positions in the airline sector. For one group of investors, him being wrong had to feel so Value strategies are underperforming as the stock market has rebounded from its mid-March lows.
4 Things The Great Depression Teaches Us About Today’s Stock Market
April 28, Member Login. Forgot username or password? The biggest issue facing investors right now is how to reconcile the obvious carnage in the real economy with the relentlessly rising stock market. There's a tendency to interpret the market as a predictor of the economy,. May 04, Matt Bell. After reaching an all-time high on February 19, the nearly year-old bull market hit a wall. In record time — just 16 trading sessions —.
What could explain this remarkable bounce back in shares? And if the economy is going into the worst slump since the Second World War, asks Ben Chu, can it possibly last?
Shanghai Disneyland is set to open again on May 11, and its reopening provides a glimpse of what Americans might see. Tesla Inc.
If this is your first time registering, please check your inbox for more information about the benefits of your Forbes account and what you can do next! Back in the midst of the total stock market mess that was March of , I started to hear the year mentioned a lot. But all of this recent talk of the s made me take a closer look at that era. In particular, I zeroed in on What I found was, frankly, one of most valuable history lessons I have seen as an investor. It then moved sideways for a while, into Investors back then underestimated the economic climate. There was a recession, but many assumed it would pass without much further damage. That played out OK, until Many people think the Great Depression started in As you will see, the events of were more of what pushed the global economy into that era. Then in the back half of the first quarter, it dipped, then dived quickly. That year was characterized by a few nagging factors that had built up over time:.
Never miss a great news story! Get instant notifications from Economic Times Allow Not now. Earlier this month, RBI Governor Shaktikanta Das held a meeting with heads of both public and private sector banks to take stock of the economic situation. Mahindra Holidays posts Rs All rights reserved. For reprint rights: Times Syndication Service. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. Markets Data.
