I get why a price of an individual stock goes up or down.
What I am trying to understand and I didn’t find on sub either is why some days a whole market can go wildly up or down at the same exact moment.
Is it just many people investing in a particular sector at once or some other factors?
Thank you in advance 🙂
In: Economics
Companies’ performance are tied to individual performance, but also to the overall economy. Factors that could impact all/many companies could cause widespread downturn, like widespread labor shortages causing wages to rise (and cutting into profits); inflation fears; a rise in interest rates, making it more costly for business to borrow and customers to finance purchases; uncertainty in market (see initial COVID plunge).
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