Term of the day – Bellwether Stock
Our term for the day is Bellwether Stock.
According to Investopedia:
A bellwether stock is a stock believed to be a leading indicator of the direction of the economy or of a sector of the market or the market as a whole. Bellwether stocks are typically large-cap equities. When they report strong earnings that may indicate the economy is strong. Their market performance may also signal how a sector or the market as a whole is likely to perform.