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Insights

💫 Must know news on Wall Street: What does it mean? Why it matters?

❓️ What causes stock prices to move? 5 reasons why a company’s price will fluctuate.

📈 Stock Market Roadmap for 03.21.24

News Explained

Fed said, “No Change”

Read the full post on CNBC here

Simplify this In plain ole english, please:
Holding rates is bullish/neutral for stocks.
Bullish, but neutral because

1. no increases have been made, but…

2. data shows that we aren’t reaching our 2% inflation any time soon

3. Powell did hint at 3 cuts this year which means a cut is now expected in the Spring.

Will be key to see if stocks close above the recent highs this week. Do stocks continue it’s bullish trend, or will this implied moved be priced in.

China's central bank to keep policy support for economy

Key statements

"Prudent monetary policy should be flexible, moderate, precise and effective... and keep the scale of social financing and the money supply in line with the expected goals of economic growth and price levels," the bank said.

Simplify this In plain ole english, please:

China’s Deputy Central Bank Backs Spending and Investing to boost prices. Could be good for Chinese companies like $NIO, $BABA, $JD etc.

Education

Price Movement Reactions

Ever wonder why stock prices change? Well, it's not just one thing – several factors can make a stock go up or down. Here's a quick rundown:

What is Price action?

Price action refers to the characteristics of an asset's price movements over time. Read more about it here.

Demand Zones. What are they?

5 Reasons why stock prices change?

1. Company Performance: Good news like strong profits, growing sales, new products, or expanding plans can make investors feel confident and boost stock prices. If a company falls short of expectations, or things don't go as planned, its stock might take a hit.

2. Market Trends: The overall market trend matters too. When prices are rising and people feel hopeful (called a bull market), most stocks get a lift. But when prices fall and folks get gloomy (known as a bear market), even the best companies can see their stock prices drop.

3. Industry Trends/Supply & Demand: What's happening in a company's industry can really sway its stock price. If the industry is booming with more demand, new tech, or rules that help out, stocks can soar. But if there's less demand, tough competition, or problems with regulations, stock prices might fall.

4. Investor Feelings: People's emotions play a big role in stock prices. When investors feel confident, they buy more, pushing prices up. But if they get spooked by news, economic reports, or rumors, they might start selling, driving prices down. Understanding how investors feel helps in making smart investing decisions.

5. News and the Big Picture: What's in the news and how the economy's doing matters too. Positive news like mergers, new products, or good economic reports can make stocks rise. But bad news like legal troubles, government rules, or a shaky economy can make stocks fall. Keeping an eye on the news and what's happening in the world helps investors stay ahead.

What doesn’t move the market?

Charts do not move the market. Some indicators are helpful to track the movement of the companies stock price, but the chart itself does not move the market.