Influences on the Stock Market: Examination of the Effect of Economic Variables on S&P 500

Authors

Nathan Taulbee '00

Abstract

It’s the economy stupid!” This slogan from Bill Clinton’s 1992 Presidential campaign acknowl edges the importance of the U.S. economy in American politics. This slogan might also resonate loudly on Wall Street and among investors across the world. In many ways the performance of the economy influences the success of the stock market and vice versa. This study will examine the impact that various economic factors have on the stock market. Specifically, it will ask the question, “How do interest rates, real GDP, and the Fisher Effect impact the S&P 500?”. In addition, this study will assess the impact of these economic factors on various industries including a utilities, transportation, financial, and technology index. The results of this study will help investors understand just how important these economic variables are in influencing both the overall market and major industries.

Recommended Citation

Taulbee '00, Nathan (2001) "Influences on the Stock Market: Examination of the Effect of Economic Variables on S&P 500," The Park Place Economist: Vol. 9
Available at: https://digitalcommons.iwu.edu/parkplace/vol9/iss1/20