Factors affecting Stock prices include:

• Macroeconomic factors: These are big-picture factors that affect the economy as a whole, such as economic growth, inflation, interest rates, and currency exchange rates. Interest rates directly impact stock valuations through the discount rates used in valuation models. Inflation impacts input costs and future earning projections.
• Company performance factors: These include factors that are specific to individual companies, such as quarterly earnings results, profitability, revenue growth, product pipeline, and market share. Companies that are doing well financially and have good prospects for growth tend to have higher share prices.
• Investor sentiment and trading activity: This includes factors such as institutional buying or selling, individual investor enthusiasm or pessimism, and momentum and algorithmic trading. High demand for a stock or index can push prices up.Geopolitical events: These include events such as government policy changes, regulatory shifts, elections, wars, and trade agreements that can have an impact on the economy.
• Market volatility: Stock market fluctuations can be caused by crises, recessions, or events that cause uncertainty and panic selling.



It is important to keep an eye on big-picture trends and company fundamentals to understand why do stocks go up and down. Categorising the many factors into the above buckets can provide a helpful perspective.