Deepak DigiTech

  The stock market   is often a sentiment indicator and can impact Gross domestic product  (GDP). GDP measures the output of all goods and services in an economy. As the stock market rises and falls, so too, does sentiment in the economy. As sentiment changes, so do people's spending, which ultimately drives GDP growth; however, the stock market can have both negative and positive effects on GDP. KEY TAKEAWAYS:- The stock market is often a sentiment indicator that can impact gross domestic product (GDP) either negatively or positively. In a bull market—stock prices are rising—consumers and companies have more wealth and confidence—leading to more spending and higher GDP. In a bear market—stock prices are falling—consumers and companies have less wealth and optimism—leading to less spending and lower GDP. Understanding How the Stock Market Affects GDP:- Before we can determine how the markets impact GDP, we must first review what drives growth in an economy. The U.S. economy's G