Which stock is most sensitive to the overall stock market movement?

The stock that is most sensitive to overall stock market movements is often determined by its beta, which measures the volatility or risk of a stock in relation to the market as a whole. A stock with a higher beta indicates greater sensitivity to market movements.

In this case, considering Amazon, it operates in the e-commerce and cloud computing sectors, which generally experience high growth dynamics and volatility. The company's performance often reflects changes in consumer trends and market sentiment, making it more reactive to overall economic conditions. Thus, Amazon typically displays greater fluctuations in its stock price compared to more stable, less growth-oriented companies like Walmart.

Products and services tied closely to discretionary spending, like Amazon's, further enhance its sensitivity to market fluctuations. When investors are optimistic, they likely increase their investment in growth stocks, and when pessimistic, they retract, causing significant impacts on stocks like Amazon. This behavior aligns with the characteristics that define high-leverage growth sectors, making it the most sensitive to overall market movements among the given choices.