A forecast of the near future American stock market

Apple has become the first trillion-dollar company while Facebook suffered the biggest single day loss in the US stock market last week. People are talking about Maga instead of Faangs, showing investors are making different expectations about these tech giants. Moreover, since the market seems to have biased interested in these tech stocks. While Facebook’s and Netflix’s share prices fell significantly, people were crying if the tech stocks were back to the earth. After seeing Apple’s trillion-dollar market value, I think that we can come to a conclusion that these tech stocks are still above other stocks.

In addition, as the market focuses their attention on tech stocks. The stocks with more market attentions will increase much more significantly than other stocks, widening market value gap. Furthermore, the uncertainty caused by the trade tension at the moment make the attention effect more significant, as investors are seeking the stocks which are less affected by the trade tension.

The US stock market is enjoying the Trump’s administration’s tax cut and the government is thinking about giving more tax cuts to people who hold stocks. The tax cuts will make stock investment more attractive.

To conclude, in the near future, Maga share prices are highly likely to increase at significant rates.