Bad news for the economy is good news for stocks

US stocks’ reaction to the Jobs report

Last Friday has been released November’s job report and the markets started to decline.

That is because the data was higher than expected and we still live in a world where bad news for the economy is good news for stocks.

The bad news can lead to the end of the Federal reserve’s interest rate hikes and can send stocks rallying.

China’s slowdown

During the weekend, in China,  the authorities have decided to ease the Covid testing requirements in most big cities.

Starting today, Chinese people can enter parks and other outdoor venues as well as use public transport without showing a negative PCR test.

Dollar weakness

The dollar plays an important role in the global economy.

The dollar is 8% down from the most recent high and it is trading below its 200-day average.

When the dollar is so weak, usually means that is a positive sign for the stock market as stocks tend to go up.

PMI data 

Today at 15:00 GMT, the  Institute for Supply Management will release the November ISM Non-Manufacturing Purchasing Managers Index (PMI) and following the market, volatility can be higher than usual.


Federica Montella

eToro Popular Investor

Follow me on social media






eToro Disclaimer

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. {etoroCFDrisk}% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results. Trading history presented is less than 5 complete years and may not suffice as basis for investment decision.

Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.

Cryptoasset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

Crypto Investing Risk Warning

Crypto assets are highly volatile. Your capital is at risk.
Don’t invest unless you’re prepared to lose all the money you invest.
This is a high-risk investment, and you should not expect to be protected if something goes wrong.

Read the full disclaimer

Sign up to receive my latest articles in your inbox

I agree that my data is used according to the privacy policy

Author: Federica Montella
eToro Popular Investor, food lover and blogger. Stock trader and Popular Investor at eToro. I am on a mission to find the best restaurants and food to eat.