Trading the US stock market is one of the most important investment opportunities that all investors worldwide dream of taking advantage of. The United States has the two largest stock exchanges globally, namely the New York Stock Exchange and the Nasdaq Stock Exchange, which is home to the most prominent companies in the world. The most famous of them are Apple, Facebook, and also Google.
In any case, the idea of gaining access to trading US stock market in our current era is not challenging at all today. It has become easy for all investors from different parts of the world to go into this investment, and today we will take you on a detailed tour through which you will get acquainted with the mechanism by which you can trade in the US stock market, stay tuned.
What is the US stock market?
It is a place where investors practice their investment activities that include selling and buying a group of stocks listed on the stock exchange. That process is fully regulated, and control of the stock market is done through the exchange itself, as it facilitates all sales and purchases of stocks for companies listed within it.
And when it comes to the price value of the US stock market, we will find that its total value fluctuates just like any exchange in the world, as its daily value depends on the amount of buying and selling of stocks that are concluded daily through it.
US stock market indices – US indices
The US stock market contains thousands of companies listed within it, which may vary in size and specialization, so when there is a group of enormous companies that specialize in a specific field, an index is created for them.
Examples of US stock market indices
S & P 500 Index
This index includes a group of 500 huge companies distributed among banks and large financial institutions.
Nasdaq 100 Index
This index includes a diverse group of 100 huge companies listed on the Nasdaq Stock Exchange and includes various industries, including financial, technology, and investment.
30 Dow Jones Index
This index tracks the US stock market’s performance, as it reflects the situation of the dominant sectors that help the US economy. The index includes a different group of companies with diverse professional industries. Since its inception in 1896, it has witnessed the withdrawal of some companies. The entry of others on According to each company’s economy, and currently the index includes vast companies such as Apple, Coca-Cola, Disney, McDonald’s, Microsoft, Nikki, American Express, and many others, and many companies.
How to trade US stocks?
To trade on American stocks, you must first own some shares in the companies affiliated with the American stock exchanges to allow you to trade on them from the ground up, so these steps must be followed when you want to trade American stocks.
Buying US stocks
You do not need to go to the American Stock Exchange yourself to buy the stocks you want. You can save a lot of time and effort, and this is by using a broker who can do so. This broker has access to the American Stock Exchange and makes the purchase On your behalf, and it provides you with the stocks you want through a trading platform that it offers to you.
This platform enables you to conclude sales and purchase transactions on them, view all market data on the stocks that you have purchased, and make your own trading decisions by clicking on some icons only.
It would help if you chose a reliable, registered financial brokerage through which you can conclude the trading deals you want without fraud or deception to get your money whenever you want.
Working hours for the US stock market
Trading dates for the US stock market are very important things to pay attention to. Following these dates will enable you to know when you can conclude deals by opening them and when they can be closed.
The US stock markets are located in New York, with the New York Stock Exchange on Wall Street and the Nasdaq Stock Exchange in Times Square. Both open at 9:30 AM and close at 4:00 PM New York time Monday through Friday.
However, it should be noted that these dates differ according to the city from which you start your trading, so you must take into account the time difference for your city.
What influences the prices of the US stock market?
Any stock exchange around the world is affected by several factors that make its indices rise or fall, and the same is true with the stocks of the American Stock Exchange, and those factors are.
The economic situation of the country
The country’s economic situation plays an essential role in the mechanism pursued by its stock exchange; during periods of economic growth, this increases job opportunities and increases production, leading to more profits. If companies start making profits, this will lead to investor confidence. In it, and buying its stocks, and this pushes the stock market forward in general. Hence, the various economic data play an essential role in identifying the investment nature of stocks in the stock market and the expectations that are raised about them.
The local currency
The currency’s position, the central bank’s policy on interest rates, inflation reports, and other matters related to the local currency affect the status of stocks. For example, suppose unemployment spreads in society. In that case, retail sales will decrease, negatively affecting corporate profits, leading some investors to reluctant, buying those companies’ stocks, and looking for other investments, which ultimately affects the stock market’s general direction.
The political situation of the country
American policy significantly affects the stock market, which is related to the political approach that the state takes, such as tax policies, public spending, immigration policies, and other policies. For example, when Trump won the US state, the US stock market rose significantly. He promised to reduce Taxes imposed on companies, which means greater profits for them, thus attracting more investors to those companies. The opposite is also true, as wrong policies that harm the country’s economy can negatively affect the stock market.