How does the financial market impact the economy?

Stock markets, Consumer spending and business investment slows down (which reduces economic growth), Falling interest rates can stimulate economic growth. Fiscal policy can also affect the economy

Stock markets are one of the factors that affect the economy, but there are others as well. Consumer spending and business investment slows down, which reduces economic growth. Falling interest rates can stimulate economic growth. Fiscal policy decisions also can affect the economy.