NYSE market cap exceeds US GDP

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Data acquired by Finbold indicates that the New York Stock Exchange (NYSE) market cap of $ 25.62 billion is greater than the GDP of the United States by $ 21.67 billion. Market capitalization is the latest data available in February 2021, while GDP data is in April 2021.

The role of the pandemic in the market capitalization surge is demonstrated by comparing the value of the NYSE between February 2020 and February 2021. Last year, the NYSE market capitalization was $ 15.54 billion while the GDP was of $ 21.84 billion.

Low interest rate pandemic propels equity markets above U.S. GDP

The strong market capitalization of the NYSE is due to factors such as the institutions that host some of the biggest companies with huge profits. For example, the exchange is home to top tech companies whose shares have soared amid the pandemic.

The analysis highlights other reasons why the US stock market exceeds the country’s GDP.

According to the research report: “Besides the pandemic, the Federal Reserve has steadily lowered interest rates over the years while pumping more currencies into the economy. This move helped propel the stock market to the point of outperforming the economy. In addition, with the pandemic raging, the government has also instituted quantitative easing programs. The easing helped the stock markets grow more than the economy. “

Nasdaq-US, the second largest exchange in the world, has a market cap of $ 19.51 to rank below US GDP. Hong Kong Exchanges and Clearing has a market capitalization of $ 6.76 billion, which is at least three times less than US GDP. The Shanghai Stock Exchange ranks fourth in the world with a market capitalization of $ 6.55 billion, followed by the Japan Exchange Group at $ 6.54 billion.

Other exchanges with market capitalization less than U.S. GDP include Euronext ($ 5.07 billion), Shenzhen Stock Exchange ($ 4.83 billion), LSE Group ($ 3.83 billion), the TMX group ($ 2.62 billion) and the National Stock Exchange of India ($ 2.55 billion).

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