A market pullback refers to a temporary decline in stock prices or broader market indices after a period of sustained growth or rally. This correction is often driven by profit-taking, overbought conditions, or short-term negative news, rather than a fundamental change in the underlying economy or company performance. Pullbacks are typically seen as healthy for the market, allowing investors to reassess valuations and build momentum for future growth. While they can cause short-term volatility, experienced investors often view pullbacks as an opportunity to buy quality stocks at a discount, preparing for the next upward move.
