This year and particularly this summer has not been a good one for the global market. The whole world seems to be in trouble. The European markets are looking bleak; the situation in Iraq is messy, the Israel-Gaza war is at the brink, there is an Ebola virus breakout in Africa and Russian troops have just entered Ukraine.
The US markets, on the other hand, seems to be in a steady swing. All of these world events were expected to cause a ripple in the markets, but that has not yet been the case. At this time, the other major economies in the world, in order – China, Germany and Japan are also facing severe set backs.
It has been five years since the depression, after which many financial reforms were implemented. The US markets have shown a resilience that almost no other super economy can maintain. There has been a high rate of growth in the employment; production and selling businesses and all of these can be attributed to the Fed’s low-interest rate policy. Together, they have created a cushion of protection from external blows to the US economy. So much so that even the military action of Russia did not dampen the market’s spirits, and week closed quite strong.
Investors are highly positive in the market, notes Moody’s analysts. This is helping the market to stay strong and weather the attacks by global markets. This high does not mean that the US is completely oblivious to the stormy geopolitical system. A sharp hike in the price of oil, for example, can do all kinds of damage, the analysts warn.
Employment rates have been growing in the last few years, and the rate is presently at an almost seven-year high. There are two strong indicators to this; one, the number of unemployed people is coming down, and the number of fresh workers in temporary jobs and non-paying internships has dropped.
Almost all of the major companies have continued to grow in terms of profits. The S&P 500 index shows an overall 10 percent growth. This is the highest quarterly gain in over three years.
The US has been able to ward off a good amount of foreign influences, but the looming threat of the Eurozone has the potential to drag the markets down. It is coming in at a time when the oil prices are also turning out to be increasingly volatile.