Dynamic Changes in US Technical Company under Uncertain Market
DOI:
https://doi.org/10.54691/bcpbm.v38i.4209Keywords:
Federal Reserve; Exchange rate; Apple’s share price; ARMA-GARCH model; Fed Hikes Rates.Abstract
Since the outbreak of the COVID-19 epidemic, great changes have taken place in the world's economic situation. The interest rate increase by the Federal Reserve has become one of the most influential actions. Researchers have found that the Fed's interest rate hike not only has an impact on the American financial market but also on the world economic situation to a certain extent. Therefore, this paper collects the share price of US dollar and the exchange rate between US dollar and RMB since June, 2021, and uses VAR model and ARMA-GARCH model to model and analyze the data, to examine how the Fed's interest rate hike will affect the dollar's value and Apple's share price, and to predict the future exchange rate and the development trend of Apple's share price in the case of the Fed's interest rate increase, so as to further study the dynamic changes of American technology companies in the uncertain market.
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