Stock Market Decline

A “Stock Market Decline” refers to a significant decrease in the prices of stocks within a stock market over a specific period. This decline can occur due to various factors, such as economic downturns, negative corporate news, geopolitical events, changes in investor sentiment, or shifts in fiscal and monetary policies. A stock market decline is often measured by the percentage drop from a recent peak and can be observed in major market indices, such as the S&P 500, Dow Jones Industrial Average, or NASDAQ. A prolonged decline, lasting several months, is typically referred to as a bear market, whereas a shorter decline can be considered a correction if it involves a drop of 10% or more from recent highs. Stock market declines can affect investor confidence and economic activity, influencing decisions related to investments, consumption, and spending.