Market Rebound, or market rebound, is a phenomenon in which the prices of financial assets such as stocks, bonds, or cryptocurrencies begin to rise after a period of declines. Typically, this is a reaction to earlier discounts that may have resulted from macroeconomic factors such as recession, interest rate hikes, or geopolitical uncertainty. The rebound can be driven by positive economic data, interventions by central banks, such as interest rate cuts, or improved investor sentiment. An example can be the stock market rebound after the pandemic in 2020, when massive stimulus programs supported the markets. However, not every rebound guarantees a lasting bull market – sometimes it is merely a temporary correction, known as a “dead cat bounce.” Investors must analyze the fundamentals to distinguish between a short-term rebound and sustainable growth. The risk is that overly optimistic expectations can lead to further declines if economic fundamentals remain weak.
