Jayden Kwak

The stock market reflects events in the world, and a significant change took place when martial law started in Korea. Korean stocks crashed, but U.S. stocks rose, with stocks in America rising through America’s strong ties with Korea. In explaining why, its impact, and future, martial law in Korea communicated political uncertainty, and investors withdrew investments. Business curfews, a slow economy, and even international embargos concerned them. As a result, stocks in South Korea crashed. Uncertainty kept both domestic and international investors at bay, and stocks in most industries, including technology and manufacturing, saw a drop in value. U.S. stocks, however, saw an improvement in stocks. America is an age-old ally of South Korea, providing both its financial and military support. It seemed investors saw a sign that U.S. companies, including security and defense, will receive a boost. Raytheon and Lockheed Martin saw an improvement in stocks. Military expenses will rise, and these industries saw an improvement in demand for stocks. Apart, a reason U.S. stocks rose is that investors withdrew investments in a slow economy and parked them in a safe one. America is seen as a safe economy, and during times of uncertainty in the world, investors will direct funds in America’s stocks. Higher demand saw stocks appreciate in value. Industries such as technology and finance even saw an improvement, with investors speculating America’s economy will boom even in future times. In near future, stocks could possibly wobble even more, with investors weighing out South Korea’s fate. Industries such as technology and security, however, could possibly appreciate in value in future times with increased government deals and Korean shipments to America. The economic relations between America and Korea make America’s companies leaders in both dealings concerning the military and trading. Declaring martial law in Korea weakened its economy but boosted U.S. stocks. America became an investment haven, and companies with a bearing concerning military aids reaped. With continued relations between both nations, continued financial activity between them can be anticipated. Keeping track of events in the entire world can allow investors to make wise investment choices. Having information about the role played in shaping markets can allow investors to strategize in an unpredictable worldwide economy.