US stock market performance impacted by monetary policy uncertainty and investor sentiment.
The study looked at the relationship between uncertainty in monetary policy, investor sentiment, and the US stock market. They used a special method called non-linear autoregressive distributed lag (NARDL) to analyze the data. The results showed that there is a negative link between stock market performance and monetary policy uncertainty in the short term. Also, investor sentiment is affected by monetary policy uncertainty in a negative way in the long term. When investors are less sensitive to economic changes, stock prices tend to go up. Overall, the findings can help policymakers and investors make better decisions for the economy and investments.