Rise of key rates by US Fed
Analysts suppose that the US Fed is unlikely to raise the key interest rate in 2020-2021. However, if the regulator makes such a decision, the US stock market will be the first to receive the blow. The fact is that low rates cause a lot of risks thus pushing investors to pump money into shares of large companies. At the moment, market participants mostly prefer to invest funds in the shares of such high-tech companies as Amazon, Apple, and some others. Funds are also accumulated in such spheres as the housing market, digital entertainment, and consumer goods.
Sell-off of shares of largest tech companies
A massive sell-off of securities of high-tech companies, leading banks and corporations as well as organizations specialized in industry and other important sectors of the economy poses a significant threat to the US stock market. Economists suppose that the sell-off could be triggered by a surge in interest rates and geopolitical factors, including a new round of the US-China conflict.
Slowdown in US economic recovery
If the US economic growth stagnates, the country’s stock market may be seriously affected. A rise in the number of private home sales is the main sign of economic revival. A jump in sales has boosted markets for home appliances and building materials. As a result, some sectors of the US economy are nearly prospering. At the same time, investors are putting in shares of railway and automobile companies. Thus, amid the stock market’s optimism, the Dow Jones Transportation Average advanced by 2.6% whereas shares of one of the largest transportation logistics companies JB Hunt Transport Services gained almost 10%. However, FedEx, a delivery corporation, showed the best performance as its shares skyrocketed by 30.6%.
Lawsuits related to US presidential election
Most analysts are sure that the upcoming presidential elections that are scheduled to be held on November 3 will be accompanied by a bitter battle. Current US President Donald Trump will hardly leave his post without a fight. In case of defeat, he will surely defend his rights in court. In case of a recount of votes and Trump’s success in an attempt to achieve victory through the court, the US economy will find itself in an alarming situation. As a result, stock markets may sink to the bottom.
Surge in oil prices
Soaring oil prices may also negatively affect the US stock market. Most countries, including Saudi Arabia and Russia, as well as US shale companies, are interested in high oil prices. However, a sharp and unexpected jump in quotes may knock out the US economy that has just started to revive. A similar situation took place in 2008 when oil prices spiked. However, analysts suppose that this scenario is hardly possible.
This month, the price of Bitcoin has soared to a record $89,000. Despite its constant volatility, BTC remains the most promising cryptocurrency since its debut in 2009. Many early investors who believed in Bitcoin's potential are now reaping the rewards of their foresight. Let's take a look at today's wealthiest crypto enthusiasts
Economic inequality remains one of the most pressing issues in today's world. To measure the gap between the rich and the poor in each country, the Gini index is used. This coefficient reflects how income is distributed within a society: the closer the index is to 100, the greater the inequality. Let's explore which countries currently have the highest Gini index values
This year has been pivotal for Bitcoin, the world's leading cryptocurrency. One of the key milestones was the approval of Bitcoin spot ETFs by the US Securities and Exchange Commission. In April 2024, Bitcoin also experienced a halving event, which is typically seen as a positive development for the digital asset. This year, the cryptocurrency is up 57%, and analysts remain optimistic about its future. However, they highlight four key factors that could influence Bitcoin's trajectory, both for better and for worse
