Author(s) :

Ziyan Zhang .

Volume/Issue :

Abstract :

What factors impact stock prices the most has always been a mystery in our world. Up till this date, nobody has come up with a foolproof way of predicting the market. Consequently, the impact of various economic factors on stock returns should be analyzed to determine which factor will influence the market the most. This research studies the core factors affecting the stock market for the finance and technology sector. Utilizing linear regression and data from different sources, the study evaluated the factors of company earnings, consumer sentiments, and monetary policy shocks in relation to changes in stock prices for technology and finance companies. However, the analysis is illustrative and does not establish causality. It is found that monetary policy shocks usually have the biggest influence on stock prices both negatively and positively compared to other factors.