Market Decline

Market Decline refers to a situation in which the overall value of a financial market, such as a stock market, decreases over a specific period. This decrease is typically reflected in the decline of major market indices, which track the performance of a selection of stocks representing a broader segment of the market. Market declines can be triggered by various factors, including economic downturns, negative market sentiment, rising interest rates, political instability, decreased corporate profitability, or changes in legislation affecting businesses. A market decline can be temporary or part of a longer-term downward trend and is often measured using percentage changes over time. Investors may react to a market decline by selling off assets to minimize losses or, conversely, by viewing it as a buying opportunity, depending on their investment strategies and outlook.