Stock Market: These signals coming from America are increasing fear, have investors’ confidence decreased?
Last week, a record rise was seen in the domestic market. At the same time, there was a rise in the US market as well
Last week has been better for the stock markets. Indian markets have registered a record weekly rise. At the same time, the decline in the US markets for 4 weeks has stopped. However, amidst all this, there are some such signals in the market which are not allowing investors to trust the market. Important among these is the Dow Jones Transportation Average Index. This index includes 20 stocks of airlines, transportation, rail companies, packaged delivery companies and other transportation companies.
Many market experts consider this index important for demand in the economy. According to experts, the stocks of transportation companies are falling, which shows that investors do not trust the US economy at the moment. In such a situation, now the next week is important when important data related to the US economy is to be released. If any kind of pressure is seen in the US economy, then it can also affect the domestic markets.
What are the indications of the index
Last week, the US stock market has seen a rise. However, the transportation index has declined. The index has fallen 17 percent from its record high recorded in November. At the same time, the index has fallen 8 percent so far in the year 2025 and it has seen twice the decline in the same period as compared to the S&P 500.
In a Reuters report, the expert said that the transport sector indicates future economic activities because it indicates the consumption by the consumer. Actually, transportation is very important in the process from raw materials to finished goods. At the same time, the decrease in the movement of people also indicates that there has been a negative impact on business activity to traveling due to some reason. According to experts, the decline in the index clearly shows that investors are not showing much confidence in consumption
And what other signs are indicating the possibility of recession
Apart from the Dow Transport Index, there are many other indices which are showing that there are chances of recession in the US economy. The Russell 2000 index has fallen 15 per cent from its year’s highest level recorded in November. This index includes small companies which are the first to be affected by any negative signal in the economy.
Apart from this, the Philadelphia SE Semiconductor Index is 22 per cent below its record level of July. Semiconductors are used in many electronic products, so the market also keeps an eye on it to estimate consumer demand.
What will be in focus next week
The market will keep an eye on the Trump administration’s decisions regarding tariffs, as well as the Personal Consumption Expenditures Price Index data is also to be released on March 28 this week, which will reveal how correct the investors’ fears are.
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