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    Stock Market Evaluation

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    Can you help me get started with this assignment? Briefly summarize and explain why the stock market and the interest rates might have moved in that manner on that particular date.

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    Solution Preview

    Please find the guidance notes and references for Movement in Markets & Interest Rates below.



    Movement in Markets and Interest Rates

    Stock market can be characterized as the volatile market. There are various factors, which causes a rise and falls in the stock market such as inflation, interest rate, earnings etc. The interest rate also moves according the change in the environment scenario. The following scenario describes the movement in stock market and interest rates on a particular date.

    12/22/2009 - The short term interest rate on this date moved due to excess supply of money in the market. In order to increase the money supply the Federal government reduced the long term interest rate in the market. The decrease in the interest rate caused an increase in the economic activities, which moved the market towards growth. In the period of December the US market has seen the tremendous growth in the economy, which caused an upward movement of the Market. The growth rate was fastest during this time period (Revival in US Economic Growth Unlikely to Budge the Fed, 2010). The increase in home sales also lifted the Dow and NADAQ while the long term bond rate slipped due to this event.

    12/24/1009 - At this date short term interest rate has decreased while the long ...

    Solution Summary

    This solution provides a stock market evaluation.