Market Sentiment

Market Sentiment refers to the overall attitude of investors toward a particular security or financial market. It is often influenced by news, Economic Indicators, and market trends, reflecting the collective mood of investors regarding future performance.

Market sentiment can be categorized as Bullish (positive sentiment) or bearish (negative sentiment). Bullish sentiment often leads to rising prices, while bearish sentiment can result in declining prices.

Examples:

• During a strong earnings report from a major tech company, investor optimism may drive up the Stock price, indicating Bullish market sentiment.
• Conversely, if a country faces political instability, investors may sell off Stocks, leading to a drop in prices and indicating bearish market sentiment.

Cases:

• In 2008, the financial crisis led to widespread panic and negative sentiment in global markets, resulting in significant Stock market declines.
• Following the announcement of a successful COVID-19 vaccine, market sentiment turned positive, contributing to a rapid recovery in Stock prices across many sectors.