... trading activity. Many large institutional investors—funds, banks, corporations—suspend operations, which reduces trade volume. As a result, market liquidity diminishes and volatility increases. This lack of liquidity is particularly felt in stock and bond trading venues and can also impact currency and commodity markets. For American indices, such as the S&P 500, Dow Jones, and Nasdaq, the decrease in trading activity on Veterans Day typically results in minor fluctuations. However, investors trading in U.S. stocks should be prepared for increased instability,...

... movement. 3. Economic Uncertainties and Investor Preferences The global economy today is facing a high level of uncertainty: inflation, currency fluctuations, and rising interest rates—all of which favor safe-haven assets like gold and government bonds. Despite Bitcoin's appeal, many investors, particularly institutional ones, may prefer more established assets for capital preservation. Additionally, Trump's return could create conditions for a rising stock market and improved economic conditions in the U.S., which may lead to increased interest in traditional assets, including shares of American companies. In this context, Bitcoin might temporarily lose its allure as investors choose to allocate funds towards ...

... Stable macro conditions. Inflation, which surged at the start of the decade, has moderated to a more manageable level by 2024. The Federal Reserve has paused interest rate hikes, and expectations of rate cuts make stocks more attractive compared to bonds. Globalization of business. Large U.S. companies derive a significant portion of their revenues from outside the U.S. Thus, market capitalization relative to U.S. GDP appears overstated – as it compares a global business to a local economic metric. Technological boom. Breakthroughs in IT (such as the development of artificial intelligence) fuel investor confidence in accelerated ...

... expectations for tighter Federal Reserve policies. Earnings Season Negative forecasts from major banks and tech companies are exacerbating panic selling. Implications for Investors Increased volatility is undermining retail investor confidence in the stock market. Many fund managers are reassessing their hedging and diversification strategies. Defensive assets are gaining popularity: gold, high-rated bonds, and cash. Historical Context: Comparison with 1987 The last time a similar crash occurred was in October 1987, when the Dow Jones fell by 22.6% in a single day. While the current decline is less severe, the movement structure indicates systemic ...

... should monitor these data points closely. Strong inflation figures may lead central banks to adjust interest rates, impacting bond yields, currencies, and inflation-sensitive sectors. Central Bank Speeches Key central bank officials are set to speak today: ... ... Reserve’s Schmid – Likely to address domestic economic outlooks and inflationary trends in the United States. Impact on Markets: Comments from these central bank representatives may provide hints regarding future interest rate moves and broader economic ...