I get why a price of an individual stock goes up or down.
What I am trying to understand and I didn’t find on sub either is why some days a whole market can go wildly up or down at the same exact moment.
Is it just many people investing in a particular sector at once or some other factors?
Thank you in advance 🙂
In: Economics
The whole market can go up and down based on impacts of financial confidence. For example, periodic reports of unemployment. When unemployment is low, investors fear all companies will stall, because no one is making money to spend money. No one spending money means companies lose money and can’t hire people. It can be a viscous cycle.
Other factors are things like inflation fears, federal initiatives like rate hikes, tax breaks, stimulus plans and so on.
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