ESTIMATING THE S & P 500 AND THE NASDAQ: VARIABLES THAT AFFECT EACH Estimating the S & P 500 and the NASDAQ: Variables That Affect Each Introduction Here in the United States our economy has experienced many different changes, which has resulted in various growths and recessions. Researchers have studied the ups and downs of the stock market and have attempted to predict what may come. However like the roll of the dice, predicting the stock market …showed first 75 words of 2416 total…

…showed last 75 words of 2416 total…came across an extremely high correlation between the two of .9. We assumed that this would imply that the indexes could be affected by similar economic factors and indicators. Our regression analysis of the two indexes revealed that although highly correlated the two indexes are affected by different variables with different coefficients. M1 and the US Trade Balance were the only common economic factors found that were significant in each regression study of the two indexes.