Stock Price Charts

What do you think would happen to a broad-based stock price index such as the S&P 500 under each situation?

• The Federal Reserve Bank announces an interest-rate cut • The federal government announces a capital gains tax increase • Stringent new regulations on the coupling of computer software and sales of new computers are announced • Oil prices skyrocket Say what will happen and explain why

Public Comments

1. up, unchanged, unchanged, down To affect a large scale trend in the markets there usually needs to be an overall change in investment. Which usually comes from either monetary policy, business cycles, or investor confidence. Then again they say the superbowl outcome can affect the markets so who really knows right?
2. Up, slightly down (but bonds rise), S&P unchanged but NASDAQ slightly down, Down.