When interest rates rise, it typically becomes more expensive to borrow money, which can slow economic activity and lead to declines in stock prices as investors adjust their expectations. Yes, stock market corrections can occur even when the economy is strong. That range and average helps distinguish corrections and bear markets from routine market volatility, such as smaller pullbacks that may not reflect a broader reassessment of growth, inflation or earnings.
Stock market under the Trump administration
Historical investment performances are no indication or guarantee of future success or performance. TSM stock hit a record high on the news. Interest Rate Derivatives trading volumes had a record Q as a result of macroeconomic volatility. Celebrating five decades of TNAU: Maize research institutes guide innovation, growth, and achievement within Australia’s financial landscape. Compass first quarter supported by net new business and volume growth AI fever hits bond markets – tactical play or a bigger bubble?
- The Fed remains a central variable because rate policy shapes financing conditions and investor sentiment.
- Anthony Di Pizio has no position in any of the stocks mentioned.
- The Weekly Market Update is published every Friday, after market close.
- Angelo Kourkafas is responsible for analyzing market conditions, assessing economic trends and developing portfolio strategies and recommendations that help investors work toward their long-term financial goals.
- Rosling et al. (2018) hypothesise a similar pattern for several indicators of economic development.
Repricing: Tech adjusts to new narratives
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Why a new AI tool hammered some software stocks
We analyse all 1,846 live segments aired between 2017 and 2024 and compare the average daily performance of the DAX on days when it was reported to its overall average daily performance. The broadcast typically features a live segment from the Frankfurt Stock Exchange, summarising the day’s most important economic news. However, the average daily performance of all six indices turns from positive to negative when weighted by daily media coverage, as illustrated in Figure 2. The orange line shows the drop in the reported DAX, which is composed of reported daily changes and an assumed change of zero on trading days without coverage. Consider Germany’s DAX stock index as reported on the country’s most-watched nightly news programme. Media consumers should be aware of the big news bias and look beyond the daily news cycle to stay informed.
These AI agents, including new offerings like Anthropic’s legal assistant, have heightened fears that existing business models could be disrupted faster than incumbents can adapt. Taken together, in our view, these drivers suggest the North American economy remains well‑supported, with the potential for above‑trend growth in the U.S. that can help lift revenues across a broader set of sectors. An index is unmanaged, cannot be invested into directly and is not meant to depict an actual investment. The graph shows that “old economy” sectors like transports, chemicals and oil & gas are taking the lead as investors rotate away from software companies. In our view, this dynamic suggests that market action reflects rotation and repricing, rather than broad deterioration in underlying fundamentals. Avanti Feeds shares gain over 4% after positive Q3 results across parameters
If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. Parham, R and R Kaniel (2016), “Media attention and investment decisions”, VoxEU.org, 6 March. Media consumers should be aware of the big news bias and that it affects even the most trusted media.