– When people talk about “the markets”, who are they actually referring to?

Question

I understand that this technically refers to the whole economy but I’m interested in who the major players are that set market trends.

In: 0

Answer 1

In general, the markets refer to a country’s major exchange indexes (US: DJIA or S&P 500) or a overall snapshot of a specific area (manufacturing, employment…etc). The major players in each market vary, but they are generally the companies or employers that have a long record of being an overall indicator of the sentiment of that market or sector.

Investopedia has a some more detailed information that can be helpful in defining what your looking for: https://www.investopedia.com/terms/f/financial-market.asp