Analyzing the effects of global oil, gold and palladium markets: Evidence from the Nasdaq composite index

Abstract

The capital market is one of the most critical pillars of financial markets, which plays an important role in countries' economies. With the increasing development of international trade and the free flow of capital, financial asset prices spread to other assets. The extend is increasing with the expansion of communication networks as well as the close connection of financial markets to each other. Therefore, the state of a market is not only specific to itself but also affects other financial markets. Global oil, gold, and basic metal prices, including palladium, significantly influence the American financial markets. Due to the importance of the Nasdaq index for investors' investment decisions, this study analyzes the impact of oil, gold, and palladium metal prices on the Nasdaq index monthly between 2016 and 2021. Based on the final model, the oil and gold markets significantly impact the Nasdaq index, while palladium has a less significant impact.