The Impact of Nasdaq Index on SSEC: A Highlight on Potential Transmission of Shocks Across International Markets

Abstract

The Nasdaq Index, which represents the performance of major comprehensive stocks in the United States, is a leading indicator for global trends. The SSEC, on the other hand, represents the growing importance of the Chinese economy in the global financial landscape. The study recognizes the increasingly interconnected nature of global financial markets and the significant role played by major stock indices in transmitting financial disturbances across borders. With various econometric techniques to analyze the relationship between these two indices, the results demonstrate a positive correlation between the Nasdaq index and SSEC. Additionally, the findings suggest that the Nasdaq index has a significant influence on the volatility of SSEC. These results indicate the importance of global financial linkages and the potential transmission of shocks across international stock markets. The study contributes to the existing literature by providing empirical evidence on the impact of the Nasdaq index on the SSEC and highlights the implications for investors and policymakers.