The stock market had experienced a significant sell-off during the Asian session today because of the uncertainties over the Conference Board (CB) Consumer Confidence report to be released during the European session today.
Some investors had preferred to withdraw their investment as they await the outcome of this report which will have a substantial impact on the US dollar and stock markets.
All US stocks lost significant value during the Asian session today.
#Google is down by 1.82%, priced at $2,316.67.
#Microsoft is down by 1.05%, priced at $264.89.
#Shopify Inc is down by 3.12%, priced at $373.21.
#Tesla is down by 0.33%, priced at $734.75.
#Netflix is down by 0.92%, priced at $189.10.
#Amazon is down by 2.98%, priced at $113.19.
#Walt Disney (DIS) is down by 1.20%, priced at $96.61.
The current decline in stock prices could be the right time for new traders to invest in stocks. The opportunity for old stock traders would be to add more shares to their portfolios as prices will undoubtedly return higher soon.
What is the CB Consumer Confidence report, and how does it affect the stock market?
The Conference Board (CB) Consumer Confidence report is a composite index that measures the average household spending. Which is used to measure the consumer’s confidence in the economy. A survey of over 3,000 households in the US and obtaining a response from respondents on the degree of confidence they have in the economy and further requesting them to rate the relative level of the current and future economic conditions of the country, including labour availability, business conditions and possibilities for future growth. In the end, an index calculation of this response is provided, which serves as a leading indicator of Consumer Confidence in the economy seen through their spending rate.
A shallow reading from this report below 100.0 is considered a bad sign for the economy as it shows a lack of confidence. This will primarily affect the stock market as many investors will be forced to withdraw their investments based on a lack of confidence in the economy.
On the contrary, a high reading from this report is perfect for the economy and stock markets. This gives investors more confidence to expect a bumper yield from their investments over time as the economy is appreciated.
How can one take advantage of the current dip in stock price to make profits?
It is a widely known principle in the equity market that every dip is an opportunity for new investors. This is based on the assumption that prices are sure to bounce back after each fall.
Traders seeking to take advantage of the current dip in the stock market can register for a trading account with an ATFX broker that provides access to the stock markets. This broker helps traders maximise their profits by allowing them to trade the US stocks as CFDs. Of course, CFD trading is an easy way of making huge profits by taking advantage of the high leverage offered by this broker to trade any stock of one’s choice.
