When people hear “American stock market,” they often think it is just another country’s financial system. This assumption is wrong.
The American market is not local. It is the backbone of global finance. When it moves, the world reacts — not emotionally, but structurally.
Most global trade happens in US dollars. Oil, commodities, international contracts, and reserves are dollar-based.
This gives the United States a unique position. Capital flows through the US system before it reaches other markets.
When confidence in the US market changes, money reallocates globally.
Liquidity means the ability to move large amounts of money without friction. The deepest liquidity pools exist in American markets.
Large institutions operate where exits are reliable. That place is the US.
Because institutions dominate global capital, their actions ripple worldwide.
Pension funds, hedge funds, insurance companies, and sovereign funds use the US market as a reference point.
If risk increases in America, exposure is reduced everywhere. If confidence increases, capital spreads globally.
Asian and European markets are not reacting to headlines. They are reacting to capital behavior.
Global algorithms, funds, and ETFs rebalance positions based on US market signals.
This is mechanical, not emotional.
Once you understand the structure, market noise becomes clearer.
The American market does not predict the future. It reflects the current state of global confidence.
That is why it moves the world.
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