#MarketPullback
The term "Market Pullback" refers to a temporary decline in stock prices or financial indexes, typically ranging from 5% to 10% from their recent peak.
Further explanation:
This pullback occurs due to profit-taking, economic concerns, political events, or even due to high valuations of stocks.
A sharp or short pullback is not necessarily the beginning of a market crash, but is often a healthy correction for the market.
Example:
If an index like "Nasdaq" rises to 15,000 points and then drops to 13,800 points, this is considered a pullback of about 8%.
How do investors behave?
Some investors see the pullback as an opportunity to buy at lower prices.
Others may see it as a warning sign of a larger drop to come.