Stock prices may seem unpredictable at times, but they’re driven by a mix of key factors that reflect both hard data and human behavior. At the core is supply and demand—when more people want to buy a stock than sell it, the price goes up, and vice versa.
But what affects that demand? Several things influence it, including company performance, such as earnings, growth potential, and financial health. Market sentiment also plays a big role—investor emotions, news, and trends often push prices regardless of fundamentals. Broader economic indicators like inflation, interest rates, and employment data impact the market as well. Industry-specific trends can move stock prices in groups, and global events like geopolitical tensions or major policy changes can cause rapid fluctuations.
In short, stock prices are a reflection of expectations, not just current facts. Understanding the forces behind them helps investors make smarter, more informed decisions. PS This is my opinion and my experince with the stock market please reach me or comment if am wrong