As we near the end of August, investors are closely monitoring the stock market as all three major averages are on track to record monthly losses. This comes after a period of remarkable gains and a strong recovery from the pandemic-induced market crash earlier this year. As we head into Tuesday’s trading session, here are the top 10 things to watch in the stock market:
1. Tech Stocks: The technology sector has been a driving force behind the market’s rebound, but recent volatility has raised concerns. Keep an eye on tech giants like Apple, Amazon, and Microsoft, as any significant moves in these stocks could impact the overall market.
2. Economic Data: Pay attention to key economic indicators such as consumer confidence, unemployment figures, and manufacturing data. These figures provide insights into the health of the economy and can influence market sentiment.
3. Federal Reserve: Investors will be watching for any indications from the Federal Reserve regarding monetary policy. The central bank’s actions and statements can have a profound impact on market dynamics.
4. Trade Tensions: With ongoing trade tensions between the United States and China, any developments on the trade front could impact global markets, particularly sectors heavily reliant on international trade.
5. COVID-19 Vaccine: Progress on the development and distribution of a COVID-19 vaccine remains a critical factor. Positive news in this regard could boost market confidence, while setbacks could lead to increased volatility.
6. Earnings Reports: Keep an eye on earnings reports from key companies. These reports provide insights into corporate performance and can significantly impact stock prices.
7. Oil Prices: Fluctuations in oil prices have far-reaching effects on various sectors, including energy, transportation, and manufacturing. Watch for any significant moves in oil prices and their potential impact on the broader market.
8. Political Developments: Political events and policy decisions can have significant consequences for the market. Stay informed about any political developments that could influence investor sentiment.
9. Investor Sentiment: Market sentiment plays a crucial role in driving stock prices. Pay attention to indicators such as the VIX (Volatility Index) and investor surveys to gauge overall market sentiment.
10. Technical Analysis: Keep an eye on technical indicators, such as moving averages and trendlines, to identify potential support and resistance