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Browse: Home / MONEY / Stocks

Why do stock markets around the world fall when the NYSE falls?

Carefree: Why do stock markets around the world fall when the NYSE falls?
Why does one major stock market crashing cause other stock markets around the world to fall too?

Also, is the Dow Jones the world’s most influential stock market?

Answers and Views:

Answer by answers2questions
Dow Jones is an index, not a market. It is an average of several representative stocks that reflect the overall valuation of the market. A high DJ index means confidence is high, and people are paying more for stocks. A low index means people are holding onto their stocks and not buying.

Basically, all the markets are connected. People who are doing well in one market will try to buy stocks in another market. When they’re not doing well in the NYSE, they can’t buy stocks in other markets either, and the prices there drop too.

Related Questions:

  • 1.  What does it mean when a company is removed from the NASDAQ, AMEX and NYSE naked short threshold list?
  • 2.  What is the maximum decimal that can be placed in NYSE?
  • 3.  How do I track down stocks that I once bought through a now-defunct online brokerage site?
  • 4.  Is it a good way to make money in the stock market by following NYSE’s biggest gaining stocks each day?

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