How Market Catalysts Affect ETFs
September 20, 2016 at 13:00 PM EDT
Market catalysts are events that move the market in a significant way. When the Dow Jones Industrial Average or the S&P 500 makes a big move in a single day, the financial media will often cite market catalysts as the reason – but novice investors may not have a deep understanding of what constitutes a catalyst. There are many different events that can serve as catalysts, including macroeconomic and microeconomic factors or geopolitical events, like the recent Brexit vote. In addition, there are short-term and long-term catalysts.