The Impact of Interest Rates on Stock Market Performance
Angel Perez
Co-Presenters: Individual Presentation
College: College of Business and Public Management
Major: Finance
Faculty Research Mentor: Huaibing Yu
Abstract:
This presentation aims to examine the relationship between interest rates and stock market performance. This topic is crucial for investors, policymakers, and financial analysts to understand. It will explore how fluctuations in interest rates, particularly those set by central banks, can impact stock prices and the broader market. By analyzing historical data and applying economic theory, the presentation will demonstrate how rising interest rates typically raise borrowing costs, which in turn reduces corporate investment and consumer spending. Conversely, it will also explore how falling interest rates can lower borrowing costs, stimulate economic growth, and enhance market performance. This presentation will also equip individuals with a deeper understanding of the factors at play when central banks alter interest rates, allowing for more informed investment strategies and better predictions of market behavior. In the end, understanding the impact of interest rates on the stock market's performance is extremely important for navigating difficulties of global financial markets in a growing and evolving landscape.