How and Why does the DOW and NASDAQ influences other stock to go up/down?

: How and Why does the DOW and NASDAQ influences other stock to go up/down?
How and Why does the DOW and NASDAQ influences other stock to go up/down?

Answers and Views:

Answer by Chris
Hello. The answer is a concept known as market sentiment which simply means that the general feeling amongst investors at any particular time is either bullish or bearish so when these major indexes are moving in a certain direction, it tends to pull other stocks in that same direction. Of course, there are exceptions. Hope this helps.

Answer by Doctor Deth
your question makes no sense

the DJIA and NASDAQ are INDEXES – the Number they show is a weighted formula using the actual stock prices of the stocks included in the index – it is only a “Display” number / a calculation and doesn’t AFFECT anything in the market – its the prices of the individual stocks that AFFECT the value of the INDEXES

Answer by jeff410
Because those indexes are benchmarks for certain types of stocks, Those indexes are meant to follow certain types of stocks in the market, sort of like a barometer.