Macroeconomic Factors - Economic growth levels significantly impact stock performance, with expansion phases typically leading to improved corporate profits due to increased consumer demand, resulting in rising stock prices [1] - Conversely, during economic downturns, reduced consumer spending and lower orders can negatively affect profits and stock prices [1] - Interest rate changes are crucial, as lower rates reduce financing costs for companies, encouraging investment and driving stock prices up, while higher rates have the opposite effect [1] Industry Dynamics - The development stage and competitive landscape of an industry influence stock performance, with emerging industries attracting significant investment and showing greater price elasticity [1] - Mature industries with intense competition favor companies with strong competitive advantages, leading to more stable stock performance, while declining industries may see continuous price drops [1] Company-Specific Factors - A company's operational performance and financial data are foundational to its stock performance, with consistent profit growth signaling strong management and competitiveness, boosting investor confidence [2] - A healthy debt structure indicates financial stability and risk resilience, while high debt levels may deter investors due to repayment concerns [2] - Effective corporate governance enhances investor trust through transparent decision-making and information disclosure, contributing to stock price stability [2] Policy Influences - Monetary policy directly affects market liquidity, influencing stock market dynamics, while fiscal policies like tax cuts and government subsidies can alter the business environment and profit expectations for companies [2] - Regulatory policies shape corporate behavior, with companies that align with regulations more likely to gain market favor and positive stock performance [2] International and Geopolitical Factors - Global economic integration means international economic fluctuations can impact domestic companies through trade and investment channels [3] - Exchange rate volatility affects companies with significant import/export activities, altering their profitability [3] - Geopolitical tensions can trigger market risk aversion, leading to capital flight from stocks to traditional safe-haven assets like gold, putting downward pressure on stock prices [3]