Interest rate changes often directly influence stock market performance as they affect consumer spending and corporate borrowing costs.
Inflation trends can erode purchasing power, influencing central bank policies, which in turn may affect stock valuations.
Exchange rate fluctuations can impact multinational corporations' profits, reflecting changes in stock prices for companies with significant overseas exposure.
Economic growth indicators such as GDP and employment rates provide insights into the health of the economy, influencing investor confidence and stock market trends.
Fiscal policies including tax reforms and government spending can drive market sentiment, affecting sectors differently based on the focus and scope of the policies.