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The Top Five Industries That Steer The Stock Market

The global stock market is made up of companies that represent a wealth of sectors. Different industries are included on various indices around the world. But, despite a large range of sectors being featured on stock exchanges, there are five key industries that dominate and steer market direction.

Depending on the market landscape and factors such as the economy, world events, political unrest and conflicts, these industries often influence the overall global stock market, due to their prominence. 

These sectors prove popular with all types of traders including those using funded trading as well as professional traders and even beginners. 


This industry is one of the biggest sectors with many key players featured on global stock markets.  Despite the dot-com bubble bursting and subsequently plunging multiple technology companies into bankruptcy during the early 2000s, there were a handful that managed to ride the storm. The likes of Amazon, Cisco and Microsoft continued to become huge corporate giants and now dominate the market alongside companies such as Meta, Apple and Adobe. 

As technology advances further and demand continues to increase, this sector will likely become even more powerful. However, there are risks within the industry too which could see companies fail and stock markets crash. For example, many people believe that the relatively new AI industry has echoes of the dot-com era with early investors injecting hundreds of thousands, if not millions, into the sector. Only time will tell if it is another recipe for disaster or if it will send the market soaring. 

Healthcare and biotechnology

Health and biotech companies also feature heavily in the stock market, with Astrazenca leading the industry on the London Stock Exchange in 2023. Advancements in healthcare research, technology and vaccine innovations have all influenced the market, making the pharmaceutical industry one of the most profitable sectors in the world.

A recent example includes the mRNA vaccine developments on the back of the Covid-19 pandemic. Companies such as Moderna and Pfizer heavily influenced the stock market in terms of the healthcare and biotechnology sector. 

Finance and banking

Large banks, financial institutions and fintech companies make up a significant portion of the stock market. News surrounding these companies can greatly impact the market and result in a ripple effect across other sectors. However, other factors also heavily influence the stock market when it comes to this sector. 

Interest rates, global economic factors, recessions, inflation and government fiscal policies can all affect the industry. This is especially true with news of large bank failures such as the Silicon Valley Bank collapse in early 2023.

Renewable energy and sustainability

With increasing investment in the renewable energy sector and the demand for businesses to prioritise environmental policies, this industry is becoming ever-more popular and gaining traction on global stock markets. 

Tesla is perhaps the most well-known clean energy company and features on the NASDAQ as one of today’s biggest innovators. 

Consumer discretionary

This sector includes key constituents such as Ebay, Starbucks, Nike and Walt Disney. Retail, entertainment and leisure companies are highly influenced by spending trends and market sentiment. Although big players in the global stock market, the businesses that make up this sector are often among the first to be negatively impacted by poor economic conditions such as high inflation. 

This industry is also largely affected by other sectors such as utilities and basic materials. Price movements in these industries can easily influence the supply and demand of consumer discretionary products. 

While each sector within the stock market has its own key factors which influence price movements, it’s easy to see why there are a handful of industries that have significant bearing on the global market. 

As times change and the world begins to focus more on clean energy, technology advancements and more flexible ways of working, the influence these sectors hold is likely to increase even further. 

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