Impact of Interest Rates on the Stock Market with Smart City Environment
DOI:
https://doi.org/10.69996/d92n1f71Keywords:
Smart City, Stock Market, Classification, Intelligent Marketing, Internet of Things(IoT)Abstract
A Smart City Stock Market refers to a modern, innovative financial market where stocks and assets related to the development of smart cities are traded. This market focuses on companies that are involved in the creation and maintenance of smart city infrastructure, which includes technologies like IoT (Internet of Things), renewable energy, autonomous vehicles, green buildings, and smart grids. The rise of smart cities, which use technology to improve the quality of urban living, presents investment opportunities for stocks tied to sectors such as urban mobility, sustainable energy, data analytics, and smart infrastructure. This paper examines the impact of smart city development on stock market trends, focusing on key economic factors such as GDP growth, technology adoption, interest rates, and investor sentiment. Using a classification model, we analyze six distinct scenarios during the development stages of smart cities, with numerical values for each factor. Scenario 1, representing the pre-development phase, shows a 5% GDP growth, 40% technology adoption, and 8% interest rate, leading to neutral stock price growth at 5%. As development progresses, scenarios 2 and 3 (initial and during development) show improved GDP growth (6% and 7%, respectively), increased technology adoption (50% and 60%), and lower interest rates (7% and 6%), resulting in a rise in stock price growth (10% and 15%). Post-development (Scenario 4) yields the highest values, with an 8% GDP growth, 70% technology adoption, and 5% interest rate, resulting in 20% stock price growth. Conversely, economic downturns (Scenario 5) lead to a 3% GDP growth, 30% technology adoption, and 9% interest rate, resulting in a negative growth of -5%. Finally, stagnant development (Scenario 6) sees a 4% GDP growth, 35% technology adoption, and 8% interest rate, with minimal stock price growth of 2%. The results demonstrate a clear trend: as smart cities evolve and economic conditions improve, stock market performance tends to become more positive, underscoring the importance of economic and technological factors in shaping future market dynamics.Top of Form
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