The stock market today is as volatile and much of the same movements that investors would expect once they review and come to understand the underlying trends that are impacting both stocks as well as currencies around the world. Spotting these trends today allows investors to identify opportunities in the market today for outpacing indexes and earning strong returns.
What is Driving the Stock Market Today?
The market has been hit with some uncertainty in recent sessions after a long period of strong performance after the stock market recession of 2008 to 2009. The recovery was aided in part by strong quantitative easing by the Federal Reserve. Now that the market has recovered much of its lost values, investors are growing skittish regarding what the Federal Reserve’s next moves will be and how they should best react in order to earn better returns. If the Federal Reserve raises interest rates the stock market becomes less attractive to investors which can drive down stock prices. As such, investors are skittish regarding what direction the market will turn despite improving results from companies and employment numbers.
The next major factor driving markets are strengths and weaknesses in the various currencies. The US dollar is strong and is gaining purchasing power around the world, while the Euro and other currencies are weak and are driving down international market prices. The weakness in other international markets is driving investment in the United States as investors are more attractive to global investors due to its strength and dependability throughout the world. These currency movements are impacting the prices of both international and domestic stock markets and adding further weight behind the value of US equities in the stock market today.
What is Driving the Stock Market Today?
The market has been hit with some uncertainty in recent sessions after a long period of strong performance after the stock market recession of 2008 to 2009. The recovery was aided in part by strong quantitative easing by the Federal Reserve. Now that the market has recovered much of its lost values, investors are growing skittish regarding what the Federal Reserve’s next moves will be and how they should best react in order to earn better returns. If the Federal Reserve raises interest rates the stock market becomes less attractive to investors which can drive down stock prices. As such, investors are skittish regarding what direction the market will turn despite improving results from companies and employment numbers.
The next major factor driving markets are strengths and weaknesses in the various currencies. The US dollar is strong and is gaining purchasing power around the world, while the Euro and other currencies are weak and are driving down international market prices. The weakness in other international markets is driving investment in the United States as investors are more attractive to global investors due to its strength and dependability throughout the world. These currency movements are impacting the prices of both international and domestic stock markets and adding further weight behind the value of US equities in the stock market today.