A market rebound refers to the recovery of financial markets after a period of decline or downturn. It typically follows a phase of panic selling or negative economic indicators that cause prices to drop. As investor confidence returns—often due to positive news, policy changes, or improved economic data—buying activity increases, driving prices back up. This rebound can be sharp or gradual, depending on the underlying factors and market sentiment. Investors and analysts closely watch for signs of a rebound to make informed decisions about entering or exiting the market. While rebounds offer opportunities for gains, they also come with risks, especially if the recovery is short-lived or driven by speculation rather than solid fundamentals.
