My 3 Biggest Stock Market Predictions for December
The stock market got crazy in November, as investors tried to make sense of a deluge of news -- both good and bad. Overwhelmingly positive third-quarter earnings results were overshadowed by concerns about supply chain disruptions, rising COVID-19 infection rates, inflation, and high unemployment. The CBOE Volatility Index spiked, and the month closed with big gains and big losses in successive days. Investors should keep these stock market forces in mind as we move into the final month of 2021.
Third-quarter earnings season was strong overall, but a variety of new threats have raised tension in the stock market. Investors will key in on interim sales reports to figure out how consumers are behaving and how businesses are dealing with supply chain issues and labor shortages.
Markets are reacting to news of the omicron coronavirus variant, as European governments enact new restrictions. Major stock indexes stumbled around 2% on the day after Thanksgiving as a result. Ongoing inflation and high unemployment are also threats to consumer spending as we enter the holiday season. Consumers are considered the driving force of the American economy, so weak spending could spill into other sectors.
Source Fool.com
