Question

What do you think will happen to the US market in the last quarter of 2020?

Answer 1

Solution:
Following factors will decide the fate of the US market in the last quarter of 2020. And it can go in any direction based on the outcome of these factors:

• Spread of COVID-19 virus and effect on reopening of the economy : Further spread of COVID-19 virus and how it will impact reopening of various economies including US will decide how market will behave. If there is no second wave of infection outbreak and sentiment is positive among the masses to reopen malls, shops and market, US market will take it positively and vice versa.
• Progress on the front of vaccine development for COVID-19 virus : Multiple companies across different countries are in progress of developing vaccine for COVID-19. Many of them are in their final trials, and the outcome of those companies are also supposed to come in the final quarter. So their output will also decide the sentiment and performance of the market a lot. If news is positive and promising in the vaccine front market will rise and if it's negative it will take negative turn as well.
• US elections result : US election and its result will also play a huge role in deciding the direction of market. Outcome of election will also come in final quarter and based on the result many issues like trade war with China, economic sanction on Iran and all are dependent which will affect the world market and hence US market accordingly.

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