People often use the stock market as a barometer for the economy at large. That's understandable, but often mistaken.
Broadly speaking, the economy does affect the environment in which businesses operate. An economic boom means more spending, so more revenues to go around.
Public companies have an added stake in the economy. More jobs and higher wage growth should mean people have more money to invest, increasing demand for stocks. Prices tend to rise on higher demand.
As an investor though, you can't always expect stocks to stick to the script. Stocks and their underlying businesses are affected by a variety of things beyond big-picture headlines. That's why stocks can have surprising reactions to individual news events.
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