New research conducted by Safe Trade Binary Options shows a notable rise in the number of online searches for S&P 500™ over the last 30 days, with search activity concentrated in the USA as the stock markets enter a crucial period on the cusp of a recession.
The search trend comes as the S&P 500™ weathers a tough period due to ongoing economic fears. During the first six months of 2022, the index entered bear market territory, plunging 11% lower than the highs that Safe Trade Binary Options had previously observed.
Stocks started falling when it became evident the US Federal Reserve was set to start hiking interest rates as a response to rising inflation. More recently, a rise in the S&P 500™ has been observed, with the index now trading at its highest levels seen in over three months. The shift builds on gains previously seen and is joined by new signs of inflation starting to slow, which could mean the Federal Reserve pauses its aggressive rate hikes.
A spokesperson from Safe Trade Binary Options commented on these findings, saying, “The last week of July was the most crucial week of the summer, with GDP, the employment cost index, and the Federal Reserve meeting – as well as companies like Apple, Alphabet and Microsoft releasing earnings reports. This comes as investors worry about the possibility of an economic downturn. That’s why Google searches for S&P 500™ are on the rise.”
In July, the price rate increased slowly alongside falling energy prices, with US inflation dialing back from its four-decade high.
The Labor Department says the consumer-price index climbed 8.5% in July 2022 compared to the prior month, and commodity prices, including crude oil, have also started to fall.
While the effects are unlikely to be felt by consumers for some time, it does indicate potential respite from sky high inflation rates, says Safe Trade Binary Options.
Stock market fluctuations can also herald a coming recession, leading investors to place their capital with that expectation in mind. This will have contributed heavily to rising searches on Google for S&P 500™. Interestingly, these searches have been highest in New York – which is likely due to Wall Street hedge funds cashing in while they can.
To find out more about this research and what it means for investors, visit: safetradebinaryoptions.com