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
For any given company, prices go up and down based on things that happen to that company or might effect that company. If your company has cows that make milk which you sell, then if your cows die your value would probably drop and if people buy more milk for a holiday then your value might raise. Most big companies aren’t quite that simple but the same basic logic applies.
When the whole market moves at once then you would expect that something had affected every company (or at least every major company). This can happen with things like tax laws being passed, natural disasters and wars influencing what consumers will buy, more or less money being printed or loaned by a government, and even certain financial results like when a bubble bursts and people can’t pay debts.
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