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The Us Stock Market At Sector Level: Inflation News, 1990-2013

Author

Listed:
  • Francisco JAREÑO
  • Marta TOLENTINO
  • María de la O GONZÁLEZ

Abstract

This study analyses the US stock market at sector level from January 1990 to April 2013, taking into account the state of the economy. In concrete, this paper focuses on the recession periods, such as July 1990 – February 1991, April – November 2001 and January 2008 – March 2011, according to the NBER classification. Moreover, this analysis studies not only sector stock returns, but also sector trading volumes. Thus, some sectors of the US stock market show significant volatility in periods of economic turbulence, mainly during the global financial crisis (January 2008 – March 2011). In addition, this study evidences that inflation news would especially affect the US sector stock returns two days after the announcement. Lastly, according to Jareño et al. (2018), inflation announcements appear to have an impact when the state of the economy is low and when the direction of news is negative.

Suggested Citation

  • Francisco JAREÑO & Marta TOLENTINO & María de la O GONZÁLEZ, 2018. "The Us Stock Market At Sector Level: Inflation News, 1990-2013," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 18(1), pages 73-86.
    • Handle: RePEc:eaa:aeinde:v:18:y:2018:i:1_5
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    References listed on IDEAS

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    8. María de la O & Francisco JAREÑO, Francisco & SKINNER, Frank S., 2017. "The Financial Crisis Impact: An Industry Level Analysis Of The Us Stock Market González," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 17(2), pages 61-74.
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    More about this item

    Keywords

    US stock market; sector return; trading volume; recession; inflation news.;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G3 - Financial Economics - - Corporate Finance and Governance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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