There are four major stock market indices, namely, the Dow Jones Industrial Average, S&P 500, NASDAQ, and Wilshire 5000 price Index. Go to the Federal Reserve Bank of St. Louis link https://fred.stlouisfed.org/ and type in each of the four stock market indices.
- How did the stock market behave in 2020, that is by how much has each of the indices changed in 2020? Change the graph period from the beginning of the year to the end of the year.
- Which of these indices is a better indicator of the stock market? Why?
- Do you think that the stock market is a good indicator of the state of the economy?
In response to your peers, explain whether you agree or disagree with their choice of the best stock market index and whether or not it is a good indicator of the economy.
