Table 3

US Stock market performance – shifts in the S&P 500 index

S&P 500 Index
Variables(1)(2)(3)(4)(5)(6)
Intercept274.77 (4.78)319.64 (10.84)48.52 (4.52)239.35 (4.72)244.30 (8.75)48.32 (12.69)
Gold–0.04 (–0.29)–0.36*** (–5.76)0.02 (0.18)   
Crude oil   0.07 (1.24)–0.07 (–1.52)–0.06 (–1.03)
CDS spread0.008 (1.64)0.006 (1.60)–0.002 (–0.67)0.007 (1.35)0.008 (2.08)–0.002 (–0.75)
6-mo T-bill rate0.05 (0.61)0.05 (1.65)–0.14 (–2.39)–0.02 (–0.18)0.08 (1.75)–0.09 (–1.66)
NBUDI–2.04 (–4.20)–2.04 (–8.87) –1.72 (–3.47)–2.08 (–6.68) 
BEI  0.35 (5.70)  0.40 (4.92)
FRB 0.32 (8.35)  0.24 (5.15) 
Fed funds rate–0.17 (–1.66) 0.04 (0.67)–0.11 (–1.22) 0.02 (0.33)
Job postings0.44 (16.48)0.31 (11.55)0.25 (5.41)0.39 (8.01)0.38 (10.34)0.28 (6.00)
Macro news effectYesYesYesYesYesYes
COVID news effectYesYesYesYesYesYes
Election effectYesYesYesYesYesYes
Observations118118118118118118
Adj R-sq0.94020.96660.95200.94120.96080.9520

Note(s): *** indicates significance at 1% level; ** indicates significance at 5% level; * indicates significance at 10% level. Variables with moderate-to-severe multicollinearity (VIF>10) are avoided in each model. The coefficient of the fixed effects is not reported. The sample period is the weekly observations from Jan’2020 to Mar’2022. T-statistics values are in parentheses

Source(s): Authors’ work

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