How does Black Friday affects stock markets

By 28/11/2019News
Black Friday

Everyone in the world knows about “Black Friday”, the day when shops arrange crazy sales and buyers take a queue in the morning to buy goods with a good discount.

Now “Black Friday” is an international action and a serious driver for global retail. Since America is a consumer society, this day has a very strong impact on domestic consumer spending, which also has a positive impact on the overall state of the U.S. economy.

According to the National Retail Federation, in 2018, 165 million people shopped in stores or online during the period from Thanksgiving through Cyber Monday. Around 25% of people shopped online, 21% shopped in stores and 54% shopped both online and in stores, spending an average of $313.29 over the five-day period.

How does Black Friday affects stock markets and the economy as a whole? The retail sales data will be published at the weekend. For many investors, the sales results these days are an important signal for the decision-making and evaluation of the companies producing goods. Perhaps buying shares of large trading companies with strong fundamentals will be an interesting investment before the New Year holidays. Stock markets usually react with growth because of positive investors.

In recent years, “Black Friday” has gained popularity in almost all countries of the world. Due to the development of online trading, sales start in mid-November. The leaders among the goods are electronics, appliances, clothing and footwear.

Investors’ attention is focused, first, on how much sales on Black Friday will exceed or will be below analysts’ forecasts. This allows us to understand the real mood of American consumers, and therefore make a prediction of how retail sales will behave in the coming months.

Therefore, if the level of sales exceeds forecasts, we can expect the growth of the American stock market before the end of the year.


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