Market Response

Market response refers to how financial markets, such as stock exchanges or currency markets, react to new information, news, or events. When something significant happens—like a company announcing strong earnings or a government introducing new policies—investors adjust their expectations, leading to changes in asset prices. This reaction helps reflect collective investor sentiment and perceptions about value or risk. In essence, market response is the way markets absorb and interpret new data, causing prices to rise or fall accordingly, providing signals to investors about the perceived impact of the information.