A market pullback is a temporary decline in the price of stocks or the market index after a recent upward trend. It usually ranges between 5% to 10% and is considered a natural part of market cycles. Pullbacks are often driven by short-term profit-taking, economic data, or investor sentiment. Unlike a correction or crash, pullbacks are brief and not a sign of a long-term downtrend. For investors, a pullback can be a healthy opportunity to buy high-quality assets at lower prices. It helps the market reset and prevent overheating. Recognizing a pullback can aid in making informed decisions rather than reacting emotionally to short-term volatility.
