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Why does stock index futures affect the stock market?
Stock index futures is a financial market derivative, which is widely used in the stock market. The change of stock index futures price directly affects the stock market, which is due to the interaction between the two markets.

First of all, the price of stock index futures is the weather vane of the stock market. This is because the stock index futures exchange is a whole, which represents the expectation of the overall market ups and downs in the future. If its price falls, investors will think that the market as a whole will fall in the future, thus selling their own stocks quickly, leading to the stock market falling. or vice versa, Dallas to the auditorium

Secondly, stock index futures can affect institutional investors in the market. Due to the huge funds of institutional investors, the impact of stock index futures prices on them may be more significant. Investment institutions usually use stock index futures to hedge. If the price of stock index futures falls, institutional investors may sell a lot of stocks to protect their profits, which will lead to a market crash. or vice versa, Dallas to the auditorium

Finally, the fluctuation of stock index futures prices will also have a psychological impact on the stock market. The stock market is a place full of passion and emotion, and the change of stock index futures price can cause investors to panic or be happy. If the price of stock index futures suddenly falls sharply, investors may be pessimistic and the stock market will fall further. or vice versa, Dallas to the auditorium

To sum up, the price changes of stock index futures have a far-reaching impact on the stock market. Due to the complex interaction between the two markets, changes in either side may have a significant impact on the other. Investors should pay close attention to the changes in the stock index futures market in order to make corresponding investment decisions.