Stock markets key to the economy
Andrew Lisa, 2-17. Freelance writer, Award-winning writer. Content Creator. “How To Tell If the US Economy Is Actually Improving.” February 17, 2022. https://finance.yahoo.com/news/tell-us-economy-actually-improving-120028472.html
The S&P 500 delivered roaring gains approaching 27% in 2021, but the benchmark index has stumbled into 2022, suffering losses over 7% year-to-date. Tech stocks have endured an especially brutal sell-off. The stock market is a leading economic indicator that reflects on overall economic activity, how investors feel about the economy and the profitability of corporations. A bull market can be misleading, but generally, the stock market enjoys sustained periods of growth when businesses are profitable, when unemployment is low, when GDP is up, when consumers are confident and spending money and when the economy is strong.