Does Wall Street Care About the Wave of Strikes?

By: Anneken Tappe · October 11, 2023 · Reading Time: 2 minutes

Strikes Versus Stocks

There are strikes on every corner this year, it seems. From airlines, to the auto industry and Hollywood, American workers are fighting to get their voices heard. In 2023, roughly 450,000 workers have participated in more than 300 strikes, per Cornell University’s Labor Action Tracker .

Companies in the midst of contract negotiations with their workforce have to worry about their productivity and how much lengthy negotiations might cost them.

However, despite this turbulence, Wall Street has remained largely unfazed. The S&P 500, the broadest measure of the U.S. stock market, has chugged along to a near 14% gain year-to-date.

Buy the Dip?

Nearly a third of investors view these worker disputes as a potential buying opportunity for fundamentally-strong companies. After all, both companies and workers are incentivized to come to an agreement eventually.

Limited Impact

Portfolios that rely mainly on indexes probably have even less to worry about.

Strikes against Hollywood and automakers may have dominated the news cycle, but these industries only represent a small portion of the stock market. Entertainment and media companies are roughly 2% of the S&P 500, while Ford (F) and GM (GM) make up less than 0.25% of the total index.

Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!

Check it out

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

TLS 1.2 Encrypted
Equal Housing Lender