A stock that sets the tone for the rest of the market is often referred to as a leader. It is considered a bellwether, or a reliable indicator, in both the stock market and the bond market. For example, General Motors is often seen as a bellwether in the stock market, while the most recently auctioned 10-year bond is considered a benchmark issue in the cash bond market. These terms are important to understand in the world of finance as they give us insight into the overall trends and movements of the market.
