Stock Markets Exposed

What percent do the major stock markets like Nasdaq, NYSE, and Dow Jones influence the U.S. economy?

Public Comments

1. They all influence the US economy in some way, but it could also be said that their performance is influenced by the direction of the economy and not the other way around.
2. The GDP is $12,455,825,000,000.00 USD. (2005) You need to find out how much every NASDAQ and NYSE company sells in 2005. There are 3,121 US companies listed in the NYSE. It would take a lot of time and money to answer your question.
3. They influence the economy a great amount. Stock market crashes have been known to throw the economy into recession and depression. When the stock markets are rising people are making money and spending it. When stock markets are falling people stop spending money and companies begin cutting back throwing people out of work. I may be exaggerating perhaps a little but not much when I tell you that the stock markets are perhaps the most influencial factor in the performance of the economy. When the stock market tanked in 1987, the Fed went into overtime attempting to prevent the crash from wrecking the economy. When the stock market tanked again in 2000, again the Fed went into overtime attempting to prevent the crash from wrecking the economy. When the stock market tanked in 1972, the Fed did not prevent the crash from wrecking the economy nore in 1929.