stock market volatility

Stock market volatility refers to the degree of variation in stock prices over time. When volatility is high, prices can change rapidly and unpredictably, reflecting uncertainty or strong reactions to news. Conversely, low volatility indicates more stable prices with smaller fluctuations. It’s driven by factors like economic data, corporate performance, geopolitical events, and investor sentiment. Volatility can present opportunities and risks, influencing investment strategies. Essentially, it measures how much and how quickly stock prices swing, helping investors gauge market risk and stability at a given time.