#MarketPullback
The term “Market Pullback” is used in financial markets to refer to:
📉 A temporary decline in market prices
It is a slight and temporary decrease in the prices of stocks, currencies, or other financial assets, usually ranging between 5% and 10% from the most recent high.
💡 Reasons for the pullback:
• Release of negative economic news
• Statements from central banks (such as interest rate hikes)
• Profit-taking by investors after a significant rise
• Political or geopolitical tensions
✅ Is it a cause for concern?
Not necessarily.
“A pullback” is different from a “crash”; it is a natural and healthy correction in market movement, and many investors see it as a good opportunity to buy at lower prices before prices rise again.
📊 Practical example:
If the market index (like Nasdaq or Dow Jones) has risen for a while and then drops by 6% over a few days, this is considered a pullback and not a crash.