Have you ever wondered how the news affects the stock market? 🤔
At its core, the stock market is driven by information. 📰
News about companies, economic trends, and global events are all information YOU can access that may affect stock prices. 📉
Think of the stock market like a game of telephone: as news travels from person to person, stock prices change according to how they feel in real time 🤳
If Apple releases bad news, like weak profits or supply chain issues, investors may sell off the stock, causing the price to drop 📉
However, if Apple releases good news, like strong profits or a new product line, investors may buy the stock, causing the price to rise 📈
Stock prices can also be affected by news that's not directly about them 🤔
Big news about politics or the economy can change people's outlook on the future, so it can cause stock prices to rise or fall.
Even world events can greatly influence stock prices 🌎
For example, Russia invading Ukraine caused many investors to be worried about war, which would be bad for the economy, and stock prices suffered in the short term
So remember: all sorts of news can affect stock prices, whether it's about the company, or the world at large 😎
We'll dive deeper in the next few lessons!